Booking a Cab? New Rule Issued for Ola, Uber & Rapido Over Advance Payments, Know More In Detail…

Central Government directs Ola, Uber and Rapido to remove advance tip features from their apps, stating that tipping should remain voluntary and separate from ride booking

Post Published By: Sreeja Chowdhury
Updated : 12 August 2026, 10:57 PM IST
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New Delhi: The Central Government issued strict instructions on Wednesday to ride-hailing platforms Ola, Uber, and Rapido, directing them to immediately discontinue the feature that allows riders to pay an advance tip.

In a circular, the Ministry of Road Transport and Highways noted that certain platforms had introduced this feature on their apps, effectively enticing passengers to pay a tip upfront.

Objection to the advance tipping feature

According to the Ministry, such a system could create the impression that paying an advance tip increases the likelihood of securing a ride quickly. This option can exert pressure on passengers to make additional payments, particularly during periods of high demand.

The Ministry clarified that tipping is entirely at the passenger's discretion and should not be linked to securing a ride. A tip is given only when a passenger is satisfied with the service; if satisfied with the driver's service, the passenger may choose to tip voluntarily after the journey concludes.

Under no circumstances can the solicitation or payment of a tip in advance be made mandatory. The objective of this move is to shield passengers from any pressure to make additional payments.

Emphasis on transparency

The usage of cab and ride-booking services has surged in major cities across the country. While fares, estimated times, and other charges are displayed upfront on these platforms, the government wants tipping to remain completely separate from the base fare and the ride-booking process.

Location :  New Delhi

Published :  12 August 2026, 10:57 PM IST

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