No more ‘advance tips’: Government orders Uber, Ola and Rapido to remove pre-ride tipping

No more ‘advance tips’: Government orders Uber, Ola and Rapido to remove pre-ride tipping

A picture taken on December 28, 2016 shows the logo of Uber. Photograph: (AFP)

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The government has directed Uber, Ola and Rapido to remove pre-ride tipping prompts, saying they violate the Motor Vehicle Aggregator Guidelines, 2025.

The Ministry of Road Transport and Highways has directed ride-hailing aggregators Uber, Ola and Rapido to immediately pull pre-ride tipping prompts from their apps. The directive, issued on August 11, follows concerns over prompts such as "Advance Tip" and "Choose an Add-on" that implied drivers might be more likely to accept a booking if a rider paid extra. The government says such nudges violate the Motor Vehicle Aggregator Guidelines, 2025, and has ordered platforms to bring their apps into compliance without delay.

Why has the government acted now?

The move follows months of complaints. Uber's advance-tip feature had triggered a backlash on social media, with users alleging they were being pushed to pay extra just to get rides accepted faster, prompting the Central Consumer Protection Authority (CCPA) to issue Uber a notice over the practice. Consumer Affairs Minister Pralhad Joshi had earlier called the practice "unethical and exploitative," and the CCPA went on to examine other platforms as well for similar patterns.

This latest order builds on that scrutiny by invoking the aggregator guidelines directly. It states that no feature, prompt, message, add-on or payment option should be shown before a ride is completed if it creates the impression that paying extra could improve ride confirmation, driver acceptance, allocation, waiting time or service quality.

Does advance tipping unfairly favour passengers willing to pay more?

Accounts from drivers' unions suggested a real effect, riders who tipped in advance during busy hours often seemed to get picked up faster, though it wasn't clear whether the platform's algorithm or drivers themselves were responsible. Either way, those paying extra appeared to get better service, undermining the idea of a level playing field. By pushing tipping to strictly after the ride, the government aims to remove any speed or acceptance advantage tied to a passenger's willingness to pay more.

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How does this affect drivers and their earnings?

The order doesn't ban tipping, only its use as a pre-ride inducement; voluntary tips remain allowed. Under the new framework, a tip is meant to be given only when a passenger is satisfied with the service, and can be offered voluntarily once the journey concludes.

For drivers, this likely means reverting to tips as genuine, discretionary appreciation rather than a bidding tool baked into acceptance mechanics. It could shave off the extra earnings some drivers were seeing from advance tips during peak hours, but removes the industry-wide pressure and reputational backlash tied to being seen as extracting money upfront.

Is advance tipping a dark pattern?

The directive states that no tipping feature or mechanism can be misleading, manipulative, or otherwise in violation of the Consumer Protection Act, 2019. However, the framing from the ministry is open to interpretation as to whether it is a dark pattern or not. But it is illegal.

CCPA had separately probed Uber and Ola last January over allegations of device-based fare differences, such as Android versus iPhone users being shown different prices, suggesting a pattern of regulatory attention to potentially manipulative platform design of ride-hailing apps.

How will booking actually change for passengers?

According to the Motor Vehicle Aggregator Guidelines, aggregators cannot offer a tipping option before a ride is completed, meaning passengers should no longer see tip prompts while booking, before the journey begins, or during the trip. Fare estimates, wait times and other charges will continue to be shown upfront as before; only the tipping option shifts to a strictly post-ride touchpoint, most likely appearing on the payment or rating screen after drop-off.

Platforms have been told to review and update their apps immediately; MoRTH has placed the compliance burden on aggregators themselves rather than announcing a phased rollout. So there are scopes of changes on Ola, Uber and Rapido apps in the very near term.

About the Author

Kushal Deb is a mid-career journalist with seven years of experience and a strong academic background. Passionate about research, storytelling, writes about economics, policy, cult...Read More

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