Centre Directs Ride-Hailing Platforms To Take Down ‘Advanced Tipping’ Prompts

Centre Directs Ride-Hailing Platforms To Take Down ‘Advanced Tipping’ Prompts
Centre Directs Ride-Hailing Platforms To Take Down ‘Advanced Tipping’ Prompts

The Ministry of Road Transport and Highways (MoRTH) has directed ride-hailing aggregators such as Uber, Rapido, Ola, among others, to remove tipping prompts shown before or during a ride. The ministry cited the fact that prompting these sort of additional charges violates the Motor Vehicle Aggregator Guidelines, 2025.

In a directive dated August 11, the ministry flagged prompts such as “Advance Tip”, “Choose an Add-on” and “Improve your chances of quicker ride confirmation”. It also objected to messages suggesting that tipping could increase the chances of a driver accepting a ride.

Under Clause 14.15 of the guidelines, passengers can tip drivers only after completing a ride. Aggregators cannot offer a tipping option during booking, before the ride starts or while the ride is in progress.

If the passenger opts to tip the driver, the complete beneficiary of it should be the driver and aggregators shouldn’t be allowed to charge any commissions from the amount. Besides, tipping options must not be misleading or manipulative and must comply with the Consumer Protection Act, 2019.

“All Motor Vehicle Aggregators are advised to immediately review their mobile applications and digital platforms and ensure strict compliance with Clause 14.15 of the Motor Vehicle Aggregator Guidelines, 2025. Any interface or functionality inconsistent with the above provisions should be suitably modified without delay,” the MoRTH said.

Aggregators have also been told not to use any prompt or payment option before the end of a ride that suggests tipping could improve ride confirmation, driver acceptance, allocation, waiting time or service quality.

The development comes shortly after the National Human Rights Commission (NHRC) sought a report from the Delhi government over allegations that app-based cab and auto aggregators are charging fares higher than those prescribed by the city’s transport department.

The NHRC took up the matter following a complaint alleging that app-based cab and auto services were charging commuters more than the fares notified by the authorities.

For many of the ride-hailing platforms, advanced tipping

What Do The Motor Vehicle Aggregator Guidelines, 2025 Say?

The Motor Vehicle Aggregator Guidelines, 2025, issued on July 1, 2025, set rules for ride-hailing platforms covering licensing, drivers, vehicles, safety, fares, EVs and penalties. Here are some of the more salient features: 

  • Licensing: Aggregators need a state licence valid for five years. Applications must be decided within 90 days. The licence fee is ₹5 Lakh, while the security deposit ranges from ₹10 Lakh to ₹50 Lakh based on fleet size.
  • Driver requirements: Drivers must complete 40 hours of training, including six hours of first-responder training. They must also undergo document checks, medical, eye, psychological and police verification.
  • Driver welfare: Aggregators must provide at least ₹5 Lakh health insurance and ₹10 Lakh term insurance. Passenger complaints against drivers must be investigated within three days.
  • Vehicle rules: Vehicles must have valid registration, fitness, insurance and PUC certificates, along with AIS-140 tracking and panic buttons. Vehicles older than eight years cannot be onboarded.
  • Fares: State-notified fares will be the base fare. Aggregators can offer fares up to 50% below the base fare, while dynamic pricing can go up to twice the base fare.
  • Penalties: Licences can be suspended for up to three months for violations. Penalties range from ₹1 Lakh to ₹1 Cr, while serious or repeated violations can lead to licence cancellation and forfeiture of the security deposit.

 

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