Ola, Uber, Rapido Asked To Discontinue Advance Tipping Feature; Here's Why

In a major announcement concerning ride-hailing apps, the central government on Wednesday issued strict directions to ride-hailing platforms Ola, Uber and Rapido, asking them to immediately discontinue the option that allows riders to give an advance tip.

The Ministry of Road Transport and Highways issued a circular stating that some platforms had introduced this feature on their apps, encouraging passengers to provide a tip before the ride.

Why Ola, Uber and Rapido Have Been Asked To Remove Advance Tipping Option

According to the ministry, such an arrangement could create the impression that giving an advance tip increases the chances of getting a ride quickly. This option could put additional pressure on passengers to make extra payments, particularly during periods of high demand.

The ministry clarified that a tip is entirely at the passenger’s discretion and should not be linked to the availability of a ride. A tip should be given only after the passenger is satisfied with the service. If a passenger is satisfied with the driver’s service, they may choose to give a tip after the trip has been completed.

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Under no circumstances should passengers be required or encouraged to request or provide a tip in advance. The move is aimed at protecting passengers from any kind of pressure to make additional payments.

The use of cab and ride-booking services has grown rapidly in major cities across the country. These platforms already display fares, estimated travel times and other charges in advance. The government, therefore, wants tips to remain completely separate from the base fare and the process of getting a ride.

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The move is intended to ensure greater transparency and prevent passengers from feeling pressured to make additional payments before their ride.