The Central Consumer Protection Authority (CCPA) has imposed a Rs 10 lakh penalty on Roppen Transportation Services Pvt Ltd, the company behind ride-hailing platform Rapido, over alleged misleading advertisements, unfair trade practices and the use of dark patterns. The regulator’s action follows a wider review of cab and bike-taxi aggregators, with the investigation focusing on practices involving advance tipping and dynamic pricing.
According to a Ministry of Consumer Affairs, Food & Public Distribution press release, the CCPA found that certain prompts displayed to Rapido users could influence them to increase the amount they were willing to pay even before their ride had been confirmed.
The regulator’s findings centre on how additional payments were presented to consumers during the booking process.
During its examination, the CCPA found that Rapido displayed messages including “Higher the price, higher the chance of getting a ride” and “Captains aren’t accepting at Rs 60. Try adding +10, +20, +30” while bookings were still being processed.
The authority said the platform initially showed a fare to the customer. Once the rider proceeded with the booking at that amount, they were subsequently encouraged to add more money because drivers were allegedly not accepting the original fare.
According to the CCPA, such messaging could give consumers the impression that paying more was necessary to improve their chances of securing the ride.
The regulator particularly flagged the timing of these prompts, as the additional payment suggestion appeared after the consumer had already proceeded with the booking.
CCPA Says Tip Cannot Become A Pre-Ride Condition
The authority also examined whether an additional payment could appropriately be treated as a tip during the booking process.
According to the CCPA, the fare initially presented to a rider is calculated after considering factors such as the journey’s distance, travel time, traffic conditions and tolls. The fare also takes into account the amount payable to the driver.
Against this backdrop, the regulator said there was no justification for subsequently encouraging the customer to pay more for the same journey before the service had even started.
A tip, the CCPA noted, is generally a voluntary payment made after a service has been delivered. It should not effectively become a prerequisite for obtaining the service.
The authority also cited the Motor Vehicle Aggregator Guidelines, 2025, which provide that tipping functionality should be offered only after a ride has been completed, rather than during the booking process or while the journey is underway.
The Rapido penalty is part of a broader regulatory examination of practices followed by India’s app-based mobility platforms.
The CCPA had previously issued notices to Uber, Ola, Rapido and Namma Yatri, asking them to comply with the 2023 guidelines relating to dark patterns. The platforms were also directed to provide self-declarations regarding compliance.
The regulator’s examination of Uber and Ola is still ongoing.
