No more 'advance tips' for cab rides

New Delhi: The Union government has mandated that cab aggregators discontinue advance tipping options, with the Central Consumer Protection Authority penalising Rapido for unfair trade practices and "dark patterns" that mislead consumers into paying more before their rides.

The Central Consumer Protection Authority (CCPA) has fined Rapido Rs 10 lakh for unfair business practices, including advance tipping and "dark patterns." Investigations are currently underway into the business practices of other major ride-hailing platforms like Uber and Ola.

Consumer affairs secretary Nidhi Khare stated that tipping should be completely voluntary and at the discretion of consumers after they have taken the ride. Rapido's algorithm was found to use "Confirm Shaming," a dark pattern, by prompting riders to pay more after booking, creating a false sense of urgency.

The government has ordered cab aggregators to stop providing advance tipping options even before booking a ride as the practice is misleading and unfair, consumer affairs secretary Nidhi Khare said on Wednesday.

The secretary's comment comes a day after the Central Consumer Protection Authority (CCPA) slapped a Rs 10 lakh penalty on ride-hailing platform Rapido for various unfair business practices, including advance tipping for drivers. The authority is currently examining the business practices of Uber and Ola.

Responding to queries related to taxi ride aggregators, Khare said the National Consumer Helpline has received a lot of complaints against them.

ABOUT THE AUTHOR

The Hans India