The Rapido ride-hailing platform was fined INR 10 lakh by the Central Consumer Protection Authority (CCPA). The business has taken a beating for deceptive advertising, unethical business methods, and unfair contracts. Further, CCPA's findings revealed a mysterious pattern followed by the firm that made clients spend more than they should have before their rides were confirmed.

Earlier this year, the industry as a whole was investigated for its cab and bike-taxi aggregator platforms' pre-ride tipping and dynamic pricing practices. This is an area where Uber and Ola are still being investigated.

Findings of CCPA’s Investigation

The Rapido app exhibited messages like "Captains aren't accepting at INR 60" and "Higher the price, higher the chance of getting a ride" during CCPA's evaluation. According to CCPA's investigation, Rapido's algorithm initially quoted a fare to the passenger but then made the rider pay more because drivers weren't taking the initial fare. According to the authority, this approach gives the idea that paying more will increase a rider's chances of getting a ride faster.

The Guidelines for Prevention and Regulation of Dark Patterns, 2023, classified the technique as "Confirm Shaming", a dark pattern. Also, the authority looked into Rapido's "Set your price" slider and discovered that it used colour coding to influence the rider's choice of price. An orange or red warning would appear if the price was lowered, while a green "higher chance of getting a ride" indicator would appear if the price was raised. Additionally, there was more space to raise the price than lower it using the slider. The CCPA deemed this to be a second dark pattern, "Interface Interference", because the interface design subtly influenced users to spend more.

Rapido’s Argument with CCPA

The authority states that when a rider makes a booking, the fare they see already includes all of the following: distance, duration, traffic, tolls, and the sum due to the captain. There was no basis for the suggestion that the rider pay more for the same ride after it had already started. CCPA referenced the Motor Vehicle Aggregator Guidelines, 2025, which state that any tipping option must be made available only after the ride is completed and noted that tips are often voluntary payments. In response, Rapido maintained that tipping is entirely optional and that its matching algorithm keeps working regardless of whether or not a rider chooses to pay extra.

In addition, the firm mentioned that the prompts were just a reflection of real-time bargaining, just like an offline chat between a driver and a passenger. In spite of this, CCPA denied the requests, reasoning that the rider was unduly burdened by the prompts' timing and design just when they needed the platform the most. Additionally, it was pointed out that Rapido has not recorded any evidence that paying extra boosts a rider's chances of getting a ride.