It is now illegal for ride-hailing services (Uber, Rapido etc.) to ask for a tip when the users reserve transportation, according to the Center. The Road Transport Ministry issued a notice stating that the behaviour is prohibited.

According to the Motor Vehicle Aggregator Guidelines, this kind of behaviour violates the Consumer Protection Act of 2019 because it is deceptive, manipulative, or otherwise unlawful. According to the government, tips should be entirely optional and should only be paid when the excursion comes to a close.

Ministry’s Viewpoint on Tips

The government has taken note of the display by some ride aggregators of prompts/options such as "Advance Tip" and "Choose an Add-on", according to a notification. Displaying options like "Improve your chances of quicker ride confirmation" and "A driver may be more likely to accept this trip if you add a tip" allows ride aggregators to extract more money from users. Before accepting or finishing a ride, these ride aggregators offer comparable interface components.

The Motor Vehicle Aggregator Guidelines state in Clause 14.15 that the tip feature must be visible once a journey is completed. Neither before nor during the trip should it be available when you make your reservation. The notification stated that prior to the completion of the ride, the app should not display any feature, prompt, message, add-on, payment option, or user interface element that gives the impression that paying an additional amount could enhance the ride confirmation, driver acceptance, driver allocation, waiting time, or quality of service. Earlier, the platforms were urged to cease this behaviour by the consumer protection body. Nevertheless, prompts to submit a tip continue to appear on many apps, disregarding its guidance.

Nagpur Police Book Rapido Founders

The Rapido app's creators are facing charges in Nagpur, Maharashtra, for allegedly running "petrol-powered" bike taxi services without the proper authorisation. Founders Rishikesh S R, Pavan Guntupalli, and Aravind Sanka of Roopen Transportation Services Private Limited, which runs the Rapido app, were charged with a crime at the Sitabuldi police station.

Motor Vehicle Inspector Vishal Madhukarrao Bhovte of the Nagpur (City) Regional Transport Office (RTO) filed the official complaint on behalf of the state government, leading to the registration of the case. The RTO allegedly launched a crackdown on illicit passenger transport on June 23 as detailed in the complaint. A Rapido app ride from Ravi Bhavan to Priyadarshini Colony was reserved for INR 22 during this drive, according to the official.

The Regional Transport Authority and the Maharashtra government have not authorized Rapido to run gas-powered bike taxi services, according to Bhovte's complaint. The officer confirmed that the motorcycle in question (MH-31/GC-0850) was retrieved and thereafter taken to the RTO office for examination. Allegedly, someone was operating a private two-wheeler as a bike taxi without the proper documentation. Following the seizure, measures were implemented in accordance with the Motor Vehicles Act.