Rapido fined Rs 10 lakh for pressure tactics to increase ride fares, pre-ride tips

The Central Consumer Protection Authority (CCPA) has imposed a Rs 10 lakh penalty on Rapido, for misleading advertisements, unfair trade practices, an unfair contract and the use of dark patterns to prompt riders to pay more before their rides were confirmed.

The action against Roppen Transportation Services Private Limited, the company operating the ride-hailing platform, follows a sector-wide examination by the consumer watchdog of cab and bike-taxi aggregators operating in India, focusing on practices related to pre-ride tipping and dynamic pricing.

During its examination, the CCPA found that the Rapido app displayed prompts encouraging riders to increase the amount they were willing to pay while their booking was being processed.

"Higher the price, higher the chance of getting a ride."

Another prompt said, "Captains aren't accepting at Rs 60. Try adding +10, +20, +30."

According to the CCPA, Rapido's algorithm first quoted a fare to the rider. After the rider booked at that fare, the app prompted them to pay more, stating that drivers were not accepting the original price.

The authority said this created a false impression that a rider's chances of getting a ride quickly depended on paying an additional amount.

The CCPA said that, once a rider had committed to a booking, there was limited scope for negotiation. The prompts could create a sense of urgency and fear of losing the ride if the consumer declined to pay more, it added.

The authority classified the practice as "Confirm Shaming", a dark pattern identified under the Guidelines for Prevention and Regulation of Dark Patterns, 2023.

According to the CCPA, prompting consumers to make an additional payment after they had accepted the initially displayed fare could place them under psychological pressure.

This was particularly significant because the rider had already reached the booking stage and was relying on the platform to secure a ride, the authority said. A message suggesting that the chances of getting a ride were lower without an additional payment could therefore push the consumer towards paying more.‘SET YOUR PRICE’ SLIDER UNDER SCRUTINY

The Consumer Protection Authority also examined Rapido's 'Set your price' feature and raised concerns over how its pricing options were presented.

According to the authority, the slider used different colours to display options to increase or decrease the fare. When riders increased the price, the message 'Higher chance of getting a ride' appeared in green. When they tried to lower it, a warning appeared in red or orange.

The CCPA also noted that the slider offered more space to increase the price, while providing comparatively less scope to reduce it.

The authority classified this design as 'Interface Interference', another dark pattern, saying the interface influenced consumers towards choosing a higher amount.CCPA QUESTIONS TIPPING BEFORE RIDE BEGINS

The CCPA also objected to the practice of suggesting a tip before a ride had started.

According to the authority, the fare displayed at booking already takes into account factors such as distance, time, traffic, tolls and the amount payable to the driver.

Against this backdrop, the CCPA said it found no justification for subsequently suggesting that the rider pay an additional amount for the same ride before the service had begun.

The authority said a tip is ordinarily a voluntary payment made after a service has been completed. It therefore should not be presented as a condition for providing the service or as a payment necessary to obtain a ride.

The CCPA also cited the Motor Vehicle Aggregator Guidelines, 2025, which provide that a tipping facility should be made available after completion of the ride, rather than at the time of booking or during the ride.RAPIDO SAYS TIPPING VOLUNTARY

Before the central authority, Rapido said tipping was completely voluntary. The company also claimed that its matching algorithm continued to operate regardless of whether a passenger paid an additional amount.

Rapido further argued that the prompts on its app were similar to real-time conversations between passengers and drivers, including fare negotiations that could take place offline.

The CCPA, however, rejected Rapido's submissions on tipping.

The authority said the timing of the prompts and the interface design could put pressure on passengers at a point when they were relying on the platform to secure a ride.NO SUFFICIENT DATA TO SUPPORT HIGHER-PAYMENT CLAIM

The Consumer Protection Authority also examined Rapido's claim that paying a higher amount increased the chances of getting a ride.

According to the authority, Rapido did not provide sufficient data or evidence to substantiate the claim that an additional payment actually increased the likelihood of getting a ride.

The company could not produce evidence establishing the claim, the CCPA said.

The authority therefore considered the claim that a higher payment increased the chances of getting a ride to be unsupported and misleading.

The action against Rapido is part of the CCPA's wider examination of practices followed by ride-hailing platforms in India.

The authority has issued notices to several platforms, including Uber, Ola, Rapido and Namma Yatri, directing them to comply with the Dark Patterns Guidelines, 2023, and submit self-declarations on compliance.

The CCPA, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, said its examination of Uber and Ola in relation to these practices is ongoing.- EndsPublished By: Ajmal Published On: Sep 16, 2026 08:04 IST