Centre cracks whip on ride aggregators prompting passengers for advance tips

The directive, issued on August 11, said that under Clause 14.15 of the Motor Vehicle Aggregator Guidelines, 2025, passengers could be given the option of tipping drivers only after completion of a journey and not before booking a ride or while the ride is underway

Mumbai: The Ministry of Road Transport and Highways (MoRTH) has directed all app-based ride aggregators to remove tipping prompts before or during rides, saying such prompts could improperly influence passengers’ decisions and create an impression that paying extra could improve service.

Representational image (Hindustan Times)

The directive, issued on August 11, said that under Clause 14.15 of the Motor Vehicle Aggregator Guidelines, 2025, passengers could be given the option of tipping drivers only after completion of a journey and not before booking a ride or while the ride is underway.

“Tipping shall be entirely voluntary and shall be offered only after completion of the journey,” the ministry said.

Representatives of aggregator cab drivers’ unions welcomed the move, saying there was no clarity on whether the tip collected by ride aggregators actually went to drivers. “I agree with the government here,” said Mahesh Jadhav, who heads the Marathi Kamgar Sena.

Prompts for ‘better service’

Currently, all major app-based ride aggregators prompt passengers to commit to a tip ranging ₹10-100 in advance, while booking a ride, stating explicitly that it would improve chances of quicker ride confirmation.

“Most aggregator companies introduced in-app tipping (before or during rides) in 2020, and gradually made it more upfront. By 2024, in-app tipping prompts began appearing routinely while booking rides, with aggregator firms claiming it encouraged faster matching and boosted driver earnings, particularly during peak hours,” an RTO official told HT on condition of anonymity.

Representatives of aggregator cab drivers’ unions conceded that drivers often preferred accepting rides with additional tips over rides without tips.”If passengers pay tips, their rides also get booked faster,” said Jadhav.

RTO officials said they had received many complaints from commuters who alleged that some drivers gave preference to passengers willing to pay extra or sought tips even before a ride began.

“In some cases, passengers alleged that drivers cancelled rides if they refused to pay additional tips,” the officer quoted earlier said. “Such prompts and demands for tips upfront are not only misleading and designed to induce passengers to pay extra, they also violate the Consumer Protection Act, 2019.”

Directive flags violations

Taking cognisance of complaints about ride aggregators prompting passengers to pay tips in advance, the Ministry of Road Transport and Highways, in the directive issued on August 11, said that messages such as “advance tip”, “choose an add-on”, and “improve your chances of quicker ride confirmation” on ride hailing apps could pressurise passengers to make additional payments.

Referring to Clause 14.15 of the Motor Vehicle Aggregator Guidelines, 2025, the directive said, “Under the guidelines, passengers can be given the option to voluntarily tip drivers, but the option must be made available only after the ride has been completed.”

The ministry directed ride aggregators not to convey, either directly or indirectly, that paying a tip could improve chances of getting a ride, result in faster driver allocation, reduce waiting time or influence the driver’s decision to accept the booking.

Additionally, the entire amount paid by passengers as additional tip must go to the driver, the directive said. “Aggregators cannot deduct any service fee or other amount from the tip,” an RTO official noted.

A tip must remain entirely voluntary, with no link between additional payment and the passenger’s ability to secure a ride, the ministry said, directing all aggregators to review their mobile apps and digital platforms and immediately remove or modify features that violated the guidelines.

Messages to Ola and Uber seeking comments on the ministry’s directive did not elicit any response.