India
oi-Prakash KL
The Centre has directed app-based cab and bike-taxi platforms to stop offering passengers the option to tip drivers before a ride is booked. The government has called the practice misleading and an unfair trade practice, the IANS reported.
Consumer Affairs Secretary Nidhi Khare said on Wednesday that the National Consumer Helpline had received a number of complaints against taxi and ride-hailing aggregators. One of the main complaints was that riders were being asked to add a tip before the journey had even begun.
India’s Centre directed app-based taxi services like Rapido, Uber, and Ola to remove pre-ride tipping options, citing consumer complaints about the practice being misleading and unfair, and fined Rapido ₹10 lakh.
According to Khare, passengers said they were encouraged to pay the tip in advance and were led to believe that not doing so could reduce their chances of getting a ride.
“We found this to be misleading and also an unfair trade practice,” the officer, , who also heads the Central Consumer Protection Authority, said. She added that after an investigation and hearing, authorities had ordered the built-in tipping mechanism to be removed.
Khare said tipping is voluntary and should be left to the passenger’s discretion after the ride is over.
The direction came a day after the CCPA fined Roppen Transportation Services Private Limited, which runs Rapido, Rs 10 lakh. The regulator cited alleged unfair business practices, including advance tipping, misleading advertisements, unfair contract terms and dark patterns that pushed riders to pay more before their rides were confirmed.
The CCPA is also reviewing the practices of other major ride-hailing companies. Khare said investigations into Uber and Ola are underway.
The action against Rapido is part of a wider examination of cab and bike-taxi aggregators in India. The review covers issues such as pre-ride tipping and dynamic pricing.
The CCPA had earlier issued notices to Uber, Ola, Rapido and Namma Yatri, asking them to comply with the Guidelines for Prevention and Regulation of Dark Patterns, 2023. Dark patterns are deceptive or manipulative user-interface designs that can make consumers choose something they may not have intended to choose.
