The Union government has cracked down on the advance tipping feature in the ride-hailing sector, effectively banning platforms like Uber, Ola, and Rapido from soliciting tips from passengers before a ride begins.
An amendment to the Motor Vehicles Aggregators Guidelines, 2025, issued by the Ministry of Road Transport and Highways (MoRTH), through a circular dated December 15, which was reviewed by FE, has mandated that any voluntary tipping feature must only be visible to the passenger “after the completion of the journey.” The new rules also introduce a mandatory safety feature allowing female passengers to specifically choose female drivers.
The amendment comes after the Central Consumer Protection Authority (CCPA) in May 2025, had first flagged the advance tip feature as an “unfair trade practice.” The CCPA had then issued notices to aggregators after consumers complained that the “add tip” feature had turned ride-booking into an auction, where only those willing to bid a premium could secure a cab.
End of Pre-Trip Tips
Closing the loop on this, Clause 14.15 of the amended guidelines now states: “The App may provide a feature for passengers to give a voluntary tip to the driver, however, such feature shall only be visible after the completion of the journey, and should not be available at the time of booking.”
The ministry has further directed that the entire tip amount must be credited to the driver “without any deduction by the aggregator.”
The advance tipping model was pioneered by open-network apps like Namma Yatri in Bengaluru around 2023, allowing users to voluntarily add money to the fare before or while searching for a ride to attract drivers during peak hours. Rapido was the first major aggregator to adopt this feature as it expanded its cab services, using the tip mechanism to attract drivers away from rivals. Uber, and Ola have also followed in adopting the model. All major platforms currently nudge users to add a tip or “extra fare” just before requesting the ride and while searching for drivers.
Prioritising Safety
Additionally, addressing passenger safety especially for female riders, the ministry has added Clause 15.6, which mandates that apps must include “an option for female passengers to select female drivers,” subject to availability.
Industry experts suggest this move is likely to force aggregators to aggressively ramp up their onboarding of women drivers, a segment that currently constitutes less than 1% of the gig workforce.
State governments and Union Territories have been directed to ensure immediate implementation of these amendments.
Uber, Ola, Rapido, and Namma Yatri did not immediately respond to a request for comments at the time of going to the press.