Govt Cracks Down on Uber, Ola: Big Relief for Customers

Govt ends advance tipping on cab apps

The Central Government has issued fresh directions to cab aggregators, including Uber, Ola and other ride-hailing platforms, regarding advance tipping. The move aims to make the booking process more transparent and ensure passengers are not pressured into paying extra before confirming a ride.

Under the new directions, cab aggregators must remove options that encourage passengers to tip drivers before their rides are accepted. The government believes such features may create the impression that paying more can help users secure a cab faster.

Features such as Advance Tip and Quick Ride Confirmation will have to be removed from apps and digital platforms. Authorities have clarified that passengers should not be led to believe that tipping can influence a driver’s decision to accept a booking.

The government has emphasised that tipping should remain completely voluntary. It should be treated as a gesture of appreciation after a completed trip rather than a tool to improve booking chances or reduce waiting time.

Passengers will still be able to tip drivers after completing their rides. The government has also directed that the entire tip amount must be transferred directly to the driver without any deductions.

Cab aggregators have been instructed to implement these changes in line with the Motor Vehicle Aggregator Guidelines, 2025. The revised rules are expected to improve transparency and ensure a fairer experience for both passengers and drivers.