“No Advance Tips”: Cab Booking Rules Changed

Cab and ride booking services are rapidly increasing in major urban areas of the country. The fare, estimated time and other charges are displayed in advance on these platforms. Therefore, the government wants this tip to be kept completely separate from the actual fare and ride getting process.

Cab Booking Rules Changed

• No Pre-Ride Tips: Apps can no longer show pop-ups or prompts asking for an “advance tip” or add-on money during booking.
• No Tips for Faster or Shorten your Wait Time: Platforms cannot suggest that paying extra money or a tip will help your driver accept your ride faster or shorten your wait time.
• 100% to Drivers: If you choose to tip after your ride finishes, the full amount must go straight to the driver with no cuts taken by the app.
• Fair Pricing and Safety: Under updated guidelines, surge pricing is capped, and apps must provide options for female drivers for women passengers where available.

The Union government on Wednesday has directed app-based transport platforms such as Ola, Uber and Rapido to immediately stop the facility of giving advance tipping. The Ministry of Road Transport and Highways (MoRTH) in India has noted that Uber, Ola, and Rapido were asking passengers for tips before a trip even began, prompting the ban. The Ministry has issued a circular saying that some platforms had introduced this facility on their apps, in which passengers were being asked for tips from the beginning.

According to the ministry, this system has created a perception that tipping in advance increases the chances of getting a ride sooner. Especially during times of high demand, this option can put additional financial pressure on passengers. The ministry has clearly stated that tipping is entirely at the passenger’s discretion. It cannot be linked to getting a ride.

Tipping is only given if the service is satisfactory. If the passenger is satisfied with the service of the driver, then he can give a tip after the completion of his journey. It is not mandatory to ask for and give a tip in advance under any circumstances. The aim of this government initiative is to relieve the passenger from any kind of additional payment pressure.

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