Have you ever been asked to pay extra money in the name of a tip or an add-on while booking a cab, even before meeting the driver? If yes, you may have encountered a practice that the Central Consumer Protection Authority (CCPA) has termed unfair and misleading.
The CCPA has imposed a fine of ₹10 lakh on Ola for its practice of encouraging passengers to make additional payments before their rides are confirmed. The authority has also directed the company to immediately remove this option from its platform.
The CCPA described the practice as an unfair trade practice and a form of dark pattern, alleging that it could mislead consumers into believing that paying extra money would help them get a cab faster.
Ola is operated by ANI Technologies Private Limited, which has been penalised for this practice.
Does Paying a Tip Help You Get a Cab Faster?
According to the CCPA, its examination of the Ola app revealed that users were shown messages suggesting that paying a tip could increase their chances of getting a ride quickly.
The company reportedly changed the name of the payment option from ‘Tip’ to ‘Add-on’, but the basic mechanism remained unchanged.
During the ride-search process, users were shown messages such as ‘Tip now for a higher chance of getting a ride sooner’ and ‘Increase your chances of securing a ride sooner’.
Along with these messages, passengers were offered additional payment options of ₹10, ₹20 and other amounts.
The CCPA observed that such messages could create a misleading impression among consumers that paying extra money would encourage drivers to accept their booking requests faster.
Booking Data Examined by CCPA
As part of its investigation, the consumer authority examined Ola’s booking data from June 1 to June 15, 2026.
The investigation reportedly found that ride requests without add-on payments were higher than those accompanied by add-on payments.
Based on its findings, the CCPA concluded that the additional payment mechanism was misleading and could influence consumers into making unnecessary payments.
Rapido Also Fined ₹10 Lakh
In a similar action, the CCPA has also imposed a fine of ₹10 lakh on another cab aggregator, Rapido.
Meanwhile, investigations against Uber and Namma Yatri are underway.
The action is part of the consumer authority’s efforts to prevent unfair practices and misleading payment mechanisms on digital platforms and protect the interests of consumers.