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No More ‘Tip To Get Cab Faster’: Govt Orders Uber, Ola To Remove Pre-Ride Tip Prompts

The government has asked cab-hailing platforms to stop upfront tipping options that could suggest paying extra may help passengers get a cab faster.

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Key points generated by AI, verified by newsroom
  • Ministry directs aggregators to remove pre-ride tipping options.
  • Pre-ride tips implied improved service or faster confirmation.
  • Voluntary post-ride tipping remains allowed, full amount to driver.

Passengers using Uber, Ola and other cab-hailing platforms will no longer be asked to offer a tip while booking a ride. The Ministry of Road Transport and Highways has instructed motor vehicle aggregators to remove pre-ride tipping options from their digital platforms with immediate effect.

The government’s intervention centres on how these options are presented to passengers. An additional payment cannot be used or presented in a manner that suggests it could improve the chances of securing a cab or lead to faster confirmation.

The direction follows reports of ride-hailing platforms displaying prompts including “Advance Tip”, “Choose an Add-on” and “Improve your chances of quicker ride confirmation” during the booking process.

What The New Rule Means For Passengers

The issue is not tipping itself, but the timing and manner in which the option is offered.

The Ministry has asked aggregators to examine their apps and other digital platforms and remove any feature that is inconsistent with the Motor Vehicle Aggregator Guidelines, 2025, reported India Today.

A passenger cannot be presented with a tip, add-on or payment option before the ride is completed if the accompanying message implies that paying more could affect the service they receive.

This covers possible links between an upfront payment and the availability of a cab, driver acceptance, speed of booking confirmation, driver allocation or passenger waiting time.

As a result, passengers should not be encouraged to pay an additional amount during the booking process with the expectation that doing so could increase their chances of getting a ride.

Also Read : UPI Charges May Return For High-Value Transactions: Govt Weighs Two Options

Tipping Drivers Is Still Allowed

The government has not stopped passengers from tipping cab drivers.

Clause 14.15 of the Motor Vehicle Aggregator Guidelines, 2025 allows passengers to voluntarily tip drivers once the journey has ended. The provision also requires the entire tip to be passed on to the driver, with no deduction by the aggregator.

This means passengers can continue to reward drivers after completing a trip. What aggregators cannot do is position a tip before the journey as something that could help a passenger obtain or improve a cab service.

Why Uber, Ola And Other Aggregators Face Action

The Ministry's direction comes after reports about pre-ride tipping features appearing on ride-hailing platforms.

The Central Consumer Protection Authority had earlier directed cab-hailing platforms to discontinue the practice. The latest instruction from the Ministry of Road Transport and Highways reinforces the requirement under the Motor Vehicle Aggregator Guidelines, 2025.

Aggregators have now been asked to make the required changes to their apps and digital platforms without delay.

The government's direction seeks to keep tipping a voluntary choice made after a journey, rather than an additional payment presented during booking as potentially relevant to getting a cab, securing quicker confirmation or receiving a particular level of service.

Also Read : RBI Proposes New Loan Interest Rate Framework: Key Rules For NBFCs And Borrowers

Frequently Asked Questions

What is the new rule regarding tipping on cab-hailing apps?

The Ministry of Road Transport and Highways has instructed cab aggregators to remove pre-ride tipping options. These options cannot be presented in a way that suggests they improve service or booking chances.

Can passengers still tip their cab drivers?

Yes, passengers can still voluntarily tip drivers after the journey has ended. The Motor Vehicle Aggregator Guidelines, 2025 allow this, ensuring the entire tip goes to the driver.

Why did the government introduce this new directive?

The government acted due to pre-ride tipping prompts implying better service or booking chances. They want tipping to be a voluntary choice made after the journey, not a pre-payment for service improvement.

About the author ABP Live Business

ABP Live Business is your daily window into India’s money matters, tracking stock market moves, gold and silver prices, auto industry shifts, global and domestic economic trends, and the fast-moving world of cryptocurrency, with sharp, reliable reporting that helps readers stay informed, invested, and ahead of the curve.

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