From ‘add tip' to ‘add more (voluntary)', ride-hailing apps shift gears as watchdog's advance-tipping scrutiny widens

Indian Express

22-05-2025

Ride-hailing apps appeared to be engaging in wordplay a day after the Centre pulled up an aggregator over its advancing tipping feature, where users pay extra charges upfront for faster services, dubbing it 'unethical and unprofessional'.
Union Consumer Affairs Minister Pralhad Joshi, who directed the Central Consumer Protection Authority (CCPA) on Wednesday to issue a notice to Uber over its advance tipping feature, announced a day later that the CCPA was also investigating other apps such as Ola and Rapido, which he said would similarly be asked for explanations if found indulging in such practices.
Following the Centre's action, Benglauru's SaaS(software as a service)-based mobility app Namma Yatri—also the first one to introduce advanced tipping in India—slightly modified language from 'add a tip' to 'add more (voluntary)' to find a ride.
The company also defended its tipping policy by arguing that customers are given the option only after 30 seconds, if no driver accepts the ride request from them.
The CCPA has not brought Namma Yatri's advance tipping feature under its scanner.
Shan M S, chief operating officer of Namma Yatri, said, 'Mobility should be open, transparent, and community-led. On recent tipping concerns: our 'add more' feature is 100 per cent voluntary, customer-led, and the UI (user interface) now clearly reflects this. Namma Yatri's model is direct-to-driver, no commission, no stake in final fares, no discounts, and no unreasonable surge. The goal is simple: pricing that's fair, sustainable, and empathetic to both drivers and riders.'
Shan added, 'We fully support the Union minister's call for platforms to be fair, transparent, and accountable — values that have guided us from day one. At Namma Yatri, we have no financial stake in pricing. We do not take commissions, do not control pricing, and 100 per cent of the fare and any voluntary addition goes directly to the driver. We also avoid discounts and unreasonable surge pricing. The app suggests fares based on government-prescribed rates, considering traffic, distance, and congestion—but the final price is always agreed upon by the driver and customer.'
Shan also highlighted that to support community-based pricing, Namma Yatri has a bounded driver addition and an optional 'add more' feature for customers—a voluntary gesture to recognise extra effort by drivers during long waits, distant pickups, peak-hour traffic, or return trip availability.
For its part, Rapido said it did not charge any advance tip from customers before the ride begins for autorickshaws and cabs but gives passengers an option to 'add an extra fare' for its bike rides.
A spokesperson of Rapido said, 'As of now, Rapido has not received any notices or communication from the Central Consumer Protection Authority or any other regulatory body on this subject matter. We remain committed to adhering to all applicable laws and regulations governing our operations and will promptly address any concerns raised by regulatory authorities, should they arise.'
The company stated that it did not charge any commission from drivers for autorickshaw and cab rides facilitated through the platform under the SaaS model. Further, Rapido also clarified that the fare is determined directly by passengers and drivers through mutual agreement on the app, without any involvement from the company.
'For bike rides, Rapido operates under a commission-based model. Here, passengers have an option to add an extra fare, which may be interpreted as a surge price. This additional fare is entirely optional and is applied only if the customer explicitly agrees to it,' the spokesperson said.
'Rapido does not charge any tip from customers before the ride begins. This feature is designed solely as a convenience option for passengers, and customers are free to decline it while still being able to secure a ride if the captain accepts the request,' the spokesperson added.
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