Centre Bans Advance Tipping Prompts on Cab Aggregator Apps

The Ministry of Road Transport and Highways has directed all app-based ride aggregators to immediately remove in-app tipping prompts displayed before or during rides, stating that such practices improperly influence passengers and violate regulatory guidelines.

In a directive issued on August 11, the ministry stated that under Clause 14.15 of the Motor Vehicle Aggregator Guidelines, 2025, passengers may only be offered the option to tip drivers after the completion of a journey. The directive emphasised that tipping must remain entirely voluntary and should not be solicited while booking or while a ride is underway.

Currently, major ride-hailing platforms prompt commuters in Mumbai and across the country to add advance tips ranging between ₹10 and ₹100 during booking, explicitly suggesting that extra payment improves the chances of faster ride confirmation.

According to Regional Transport Office officials, in-app tipping was introduced around 2020 as a voluntary reward mechanism but became increasingly prominent by 2024 as companies pushed it to encourage quicker driver matching during peak hours. However, transport authorities received numerous complaints from commuters stating that drivers prioritised bookings with tips or cancelled rides when passengers refused to pay extra upfront.

Officials noted that such upfront prompts are misleading, pressure passengers into paying additional sums, and violate the Consumer Protection Act, 2019.

The ministry has instructed cab aggregators not to convey, directly or indirectly, that tipping can reduce wait times, speed up driver allocation, or influence a driver's decision to accept a ride. Furthermore, the directive mandates that the entire tip amount must be passed on to the driver without any deduction of service fees or platform charges by the aggregator company.

Representatives of cab drivers' unions welcomed the government's order. Mahesh Jadhav, head of the Marathi Kamgar Sena, supported the move and pointed out that there was previously no clarity on whether the advance tips collected by platforms reached the drivers.

The ministry has instructed all aggregator platforms to review their applications and remove or modify non-compliant features immediately.