How is the tip culture of cab companies increasing the problems of customers?

This is a common complaint of people using cab companies like Ola, Uber and Rapido. During peak hours between 10 am and 7 pm, when passengers book cabs at the normal fare shown on the app, drivers do not accept the booking and there is a long delay in getting the cab. As soon as customers select the option to add 'add-on tip' or 'extra money' in the app, they get the cab instantly. Because of this, passengers are forced to spend more money than the fixed fare.

 

There are more difficulties in getting a ride on Saturday or Sunday. The fare to go from Noida to Mayur Vihar Phase 1 on Rapido or Uber ranges between Rs 113 to Rs 120 on normal days. On Saturday and Sunday this fare comes between 105 to 100. When booked during this period, riders do not accept early rides. Ride is accepted only after paying more money.

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What is the solution to this problem?

The Central Customer Protection Authority (CCPA) has imposed a fine of Rs 10 lakh on ANI Technology Private Limited, the parent company of cab pooling app 'Ola'. After the ride was booked in the app, while searching for the driver, she was asking for money from the customers in the name of separate tip or add-on. The CCPA deemed it misleading, unfair, and bad. CCPA has directed Ola to immediately stop all such prompts, messages and prepaid designs that demand payment over and above the fixed fare before the journey is completed. Now the effect of this decision can be seen on other companies also.

How is the burden on customers increasing?

Messages like 'Improve your chance by adding extra' are shown in the cab booking app. These messages come when the app is clicked for ride booking and when a ride is searched. Just below that, several options for pre-determined amounts are visible. The option to pay Rs 20 to Rs 100 more appears in your app. This makes the customer feel that if he pays more money the ride will be confirmed sooner. Ola was banned for using words like 'maybe' and 'possibility', now this rule may apply to other apps too.

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What do drivers say about this?

Most cab drivers seem to agree that when customers tip them more, they book rides sooner. This earns them more money. Their complaint is that the cab companies are giving them less money for the ride, and sometimes they are unable to even meet the expenses.

What are Ola's figures saying?

Ola's own data does not support this claim. In the data from June 1 to 15, 2026, ride requests with add-ons were less accepted. In Delhi, 38 percent requests with add-on and 62 percent without add-on were accepted. In Bengaluru this figure was 40 and 68 percent, while in Mumbai it was 39 and 68 percent. CCPA said customers were not given this information. They were also not told on what basis the suggested amount was decided. This was considered to hide important information.

The CCPA says that a 'tip' is money that a customer voluntarily gives after receiving good service. If this money is asked for before the start of the journey, it becomes not a tip but a kind of 'advance charge'. Companies may have changed the name from 'tip' to 'add-on', but their method of charging customers more money is still the same.

 

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The fare is already fixed, then why do you want more?

CCPA said customers had already booked rides at fixed fares. This fare includes peak pricing and driver's pickup distance. For these reasons, asking for money again is considered like charging additional premium.

The rate of payment has also increased. In May 2025, it was Rs 10 to Rs 40, which increased to Rs 140. There was an option to pay up to Rs 499 in the app. The information about whether drivers are available remains with the platform. Therefore customers could not check for themselves whether additional money was needed or not.

What has the CCPA said on this rule?

The CCPA has deemed the practice of asking for a tip before a trip a 'dark pattern' and a violation of its rules. This creates a fear among passengers that they will not get a cab if they do not pay more. It has a worse effect on the elderly and patients traveling in hospitals, stations, airports or at night. There are clear instructions from the government that the tip option can be shown only after the journey is completed, but despite this Ola continued it. Due to similar arbitrariness, a fine of Rs 10 lakh has been imposed on Rapido, while investigation is going on against Uber and Namma Passenger. If any passenger faces such problem, he can register his complaint on National Consumer Helpline number 1915 or email (com-ccpa@gov.in).

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