Wednesday, 12 August 2026 MUMBAI EDITION LIVE

Centre Orders Ride-Hailing Apps to Stop Advance Tips

Ride-hailing apps must discontinue advance tip feature, Centre says. Move aims to protect consumers.

Mumbai Alert · Markets Desk
Mumbai Alert · Markets Desk
Markets Desk · Mumbai Alert News · Wed, 12 August 2026 at 07:48 pm
Centre Orders Ride-Hailing Apps to Stop Advance Tips

The Centre has directed ride-hailing apps to stop the advance tip feature, citing the need to protect consumers from unfair practices. This move is expected to bring relief to millions of Indians who use these services daily.

The advance tip feature allowed drivers to receive tips from passengers before the ride was completed. However, this practice was seen as unfair by many, as it did not give passengers the option to cancel or change their tip based on the quality of service.

The Centre's decision is a significant step towards regulating the ride-hailing industry, which has grown exponentially in recent years. With the rise of apps like Ola and Uber, the need for clear guidelines and regulations has become increasingly important.

The Centre has been working to create a fair and transparent environment for consumers, and this move is seen as a major step in that direction. The decision is also expected to have a significant impact on the ride-hailing industry, as companies will need to adapt to the new regulations.

Ride-hailing apps have been given a deadline to discontinue the advance tip feature, although the exact date has not been specified. The Centre has warned that failure to comply with the directive could result in action being taken against the companies.

The move has been welcomed by consumer groups, who have long been advocating for greater transparency and fairness in the ride-hailing industry. The decision is also expected to have a positive impact on the overall consumer experience, as passengers will now have more control over the tips they give to drivers.

In recent years, there have been several complaints about the advance tip feature, with many passengers feeling that they were being forced to pay tips without having the option to cancel or change them. The Centre's decision is a response to these concerns, and is aimed at creating a more consumer-friendly environment.

The ride-hailing industry has grown rapidly in India, with millions of people using these services every day. The Centre's decision is a significant step towards regulating this industry, and is expected to have a major impact on the way companies operate.

The decision is also expected to have implications for other industries, as it sets a precedent for regulating unfair practices. The Centre's move is seen as a major step towards creating a fair and transparent environment for consumers, and is expected to have a positive impact on the overall consumer experience.

In conclusion, the Centre's decision to direct ride-hailing apps to stop the advance tip feature is a significant step towards regulating the industry and protecting consumers. The move is expected to have a major impact on the ride-hailing industry, and is seen as a major step towards creating a fair and transparent environment for consumers.

Frequently asked questions

Why has the Centre directed ride-hailing apps to stop advance tips?

The Centre has directed ride-hailing apps to stop advance tips to protect consumers from unfair practices.

What is the advance tip feature?

The advance tip feature allowed drivers to receive tips from passengers before the ride was completed.

centreride-hailing appsconsumer protection
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