Rapido doesn't engage in tipping, but pricing flexibility: Co-founder Aravind Sanka
A day after Union Consumer Affairs Minister Pralhad Joshi pulled up ride-hailing apps over the advance tipping feature, Aravind Sanka, co-founder of Rapido, told The Indian Express on Friday that the bike taxi aggregator does not engage in tipping but allows pricing flexibility as a feature.
'Unlike other apps, Rapido is a SaaS based company, and we do not charge commissions, but subscription fees. We are a legion model where pricing is transparent, negotiated between consumers and drivers, and not influenced by us. It is not tipping—tipping implies a positive amount post-service, but here customers can increase or decrease the price before the ride, and drivers can accept or reject,' he said.
Rapido also told The Indian Express that no notice has been served by the Central Consumer Protection Authority (CCPA), which has currently served notice only to Uber over advance tipping. Joshi has directed the CCPA to also probe other ride-hailing apps, terming advance tipping as 'unethical and exploitative' following multiple complaints from users.
'The app immediately offers customers the option to adjust the price—up or down—upon booking. It is not a nudge to pay more for quicker service, but a feature for pricing flexibility. It is not about tipping but about giving customers control over the fare, which drivers can accept or reject,' Sanka argued.
The Rapido co-founder also stated that the option to adjust pricing is a feature and not a mandate. 'Customers can stick to the displayed price, increase it, decrease it, or cancel. It is about transparency and choice in a SaaS model, where the entire fare goes to the driver,' he said.
Saravanan, a customer, said, 'When using Rapido, if the offered tip is declined, the app prompts users to increase it a second time. This shift from bargaining to persistent haggling creates a frustrating experience, pressuring users to pay more than initially intended.'
Prajna Hebbar, another customer, said, 'Tipping before the trip is definitely exploitative. If the driver can take me for Rs 50, why should I pay extra Rs 20 to get a ride? This is nothing but arm-twisting the consumer, which is unethical.'
Niranjanaradhya N, CEO of Brand Pride Mobility Pvt Ltd, that operates Nagara, another SaaS based platform that offers auto and cab services, said, 'Tip Before Trip is not just unethical — it is unfair. A ride should not begin with an extra charge or an invisible obligation. Yet today's urban mobility systems often burden the customer and disrespect the dignity of professional drivers.'
Sanath Prasad is a senior sub-editor and reporter with the Bengaluru bureau of Indian Express. He covers education, transport, infrastructure and trends and issues integral to Bengaluru. He holds more than two years of reporting experience in Karnataka. His major works include the impact of Hijab ban on Muslim girls in Karnataka, tracing the lives of the victims of Kerala cannibalism, exploring the trends in dairy market of Karnataka in the aftermath of Amul-Nandini controversy, and Karnataka State Elections among others. If he is not writing, he keeps himself engaged with badminton, swimming, and loves exploring. ... Read More
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