₹10 lakh fine imposed on Rapido:Ride-hailing app accused of forcibly charging extra money tips from users

The consumer authority CCPA has fined the parent company of ride-hailing platform Rapido ₹10 lakh. The authority had investigated the cab and bike-taxi sector across the country. During the investigation, it found that the Rapido app was using unfair practices when rides were booked. The company was asking customers for pre-ride tips, meaning tips before the ride began. Irregularities related to dynamic pricing were also found. The app’s design created an environment that pressured customers into paying more. Understand the full matter through these questions and answers… Question 1: What kinds of messages were shown to customers on the app during booking to mislead them? Answer: When a customer booked a ride on the app, it initially displayed a fixed fare. As soon as the booking process began, different messages started appearing. The app displayed: “The higher the fare you pay, the greater the chance of getting a ride.” Another message on the app read: “Drivers are not accepting rides for ₹60. Try increasing it by ₹10, ₹20 or ₹30.” Question 2: How did Rapido’s algorithm affect customers? Answer: Rapido’s algorithm created a misconception among customers. They felt they would not get a vehicle quickly without paying more. Customers are in a hurry when booking a ride and depend on the app’s service. Therefore, fearing that they would miss the ride, they were compelled to pay more. Question 3: Why did the authority call it ‘confirm shaming’ and a ‘dark pattern’? Answer: The government has introduced the ‘Dark Patterns Guidelines, 2023’. Under these guidelines, such behaviour is classified as ‘confirm shaming’. Asking customers for extra money when they reach the final step of the booking process puts them under psychological pressure. They are made to fear that they will not get a ride if they do not increase the fare. As a result, customers are compelled to pay more. Question 4: What irregularity was found in Rapido’s ‘Set Your Price’ slider feature? Answer: The CCPA also investigated the ‘Set Your Price’ slider feature. It found that the slider had been designed to mislead customers: Question 5: What objection did the CCPA raise to asking for a tip before the ride began? Answer: According to the CCPA, the initial fare already includes the costs of distance, time, traffic and tolls. It also includes the driver’s share of the earnings. Therefore, there is no justification for asking for a tip before the service begins. A tip is always given by the customer at their discretion after the service has been completed. It cannot be made a condition for getting a ride. The rules are also clear under the ‘Motor Vehicle Aggregator Guidelines, 2025’. The option to leave a tip should be available only after the ride has ended, not during the booking process. Question 6: What arguments did Rapido put forward in its defence? Answer: Rapido made three main points in its defence before the Central Authority: Question 7: Why did the CCPA reject Rapido’s defence? Answer: The CCPA rejected all of Rapido’s arguments. The authority said the timing of the app’s messages and design was inappropriate. This puts pressure on customers when they are dependent on the app to get a vehicle. In addition, the company could not prove that paying more genuinely increased the chances of getting a ride. Therefore, the claim was found to be completely baseless and misleading. Question 8: Is any such action also being taken against other cab and bike companies? Answer: Yes, this action is part of a wider investigation into Indian cab and bike aggregator companies. CCPA Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra are leading the investigation. The authority has issued notices to companies such as Uber, Ola, Rapido and Namma Yatri. All of them have been directed to comply with the ‘Dark Patterns Guidelines 2023’. The companies have been asked to submit self-declarations. At present, investigations against Uber and Ola are ongoing.