The Union government has banned the practice of advance tipping on ride-hailing platforms such as Uber, Ola and Rapido, prohibiting them from seeking tips from passengers before a ride begins.
Through an amendment to the Motor Vehicles Aggregators Guidelines, 2025, issued by the Ministry of Road Transport and Highways (MoRTH) on December 15, it has been mandated that any voluntary tipping feature can be shown to passengers only after the journey is completed. The revised rules also make it compulsory for apps to provide an option for female passengers to choose female drivers, subject to availability.
The move follows action by the Central Consumer Protection Authority (CCPA), which in May 2025 flagged advance tipping as an “unfair trade practice.” The CCPA had issued notices to aggregators after complaints that the “add tip” feature had turned ride booking into a bidding process, favouring passengers willing to pay extra.
As per Clause 14.15 of the amended guidelines, tipping is allowed only after the ride ends and must remain unavailable at the booking stage. The ministry has also directed that the full tip amount must be credited to drivers without any deduction by the aggregator.
Advance tipping was first introduced by open-network apps such as Namma Yatri in Bengaluru around 2023 to attract drivers during peak hours. Rapido later adopted the model, followed by Uber and Ola, all of which encouraged users to add a tip or extra fare before requesting a ride.
To enhance safety, especially for women, Clause 15.6 now requires aggregators to offer female passengers the option to select female drivers. Industry experts believe this will push platforms to significantly increase the onboarding of women drivers, who currently make up less than 1% of the gig workforce.
State governments and Union Territories have been asked to ensure immediate implementation of the amended guidelines. Uber, Ola, Rapido and Namma Yatri did not respond to requests for comment at the time of publication.
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