The government has ordered cab aggregators to stop allowing customers to tip drivers before booking a ride. Consumer Affairs Secretary Nidhi Khare announced this decision on Wednesday, labeling the practice as misleading and an unfair trade practice. The directive aims to enhance transparency and fairness in the ride-hailing industry.
Khare said the National Consumer Helpline had received several complaints from consumers regarding taxi and ride-hailing aggregators. Consumers had alleged that they were being encouraged to pay a tip in advance and were made to believe that failing to do so could affect their ability to secure a ride, according to the secretary.
One of the key concerns was the introduction of an advance tipping option before the consumer had even taken the ride.
The CCPA is also examining the business practices of other major ride-hailing platforms.
“We found this to be misleading and also an unfair trade practice,” Khare said, adding that following a detailed investigation and hearing, the authorities had ordered the discontinuation of the built-in mechanism. Khare said investigations involving Uber and Ola are currently underway.
