Osegi
Startups·2 min read

Ola fined ₹10 lakh over 'advance tip' prompts in its app

India's consumer regulator says Ola told riders a tip could get them a cab faster. Its own data showed drivers accepted 38% of add-on requests in Delhi, against 62% without.

A smartphone showing a ride-hailing app booking screen with a tip prompt in an Indian city street.
Image: Inc42 Media

Ola's "advance tip" button has cost the company ₹10 lakh and, more importantly, its existence. India's Central Consumer Protection Authority (CCPA) ruled on November 10 that the feature misled riders, and ordered Ola to drop it.

The app showed a message saying: "Adding a tip might help increase the chances of getting a ride faster." Preset amounts started at ₹10 to ₹40, later rose to as much as ₹140, and users could type in a custom sum up to ₹499. Ola, run by ANI Technologies, has to pay the fine and file a compliance report within 15 days.

Why did the CCPA fine Ola?

Ola argued the payment was a voluntary tip that went to drivers and did not affect ride allocation. The regulator pointed to Ola's own numbers for June 1 to 15, 2026. In Delhi, drivers accepted 38% of requests with an add-on and 62% without. Bengaluru showed 40% against 68%, Mumbai 39% against 68%.

The CCPA also noted that Ola renamed "tip" to "add-on" in May 2025 but kept prompts like "Improve your chances of quicker ride confirmation!". Its verdict: a name change does not change what the feature does. It called the design "confirm shaming", a dark pattern banned under India's 2023 rules, because users could not close the prompt and might fear a delay if they said no.

About 9.8% of 39.94 lakh requests in the three cities carried an add-on. The CCPA estimated customers paid roughly ₹56 lakh extra on accepted rides.

Is advance tipping allowed in India?

Not under the road transport ministry's 2025 aggregator guidelines. Clause 14.15 says passengers can tip only after a ride is completed, and the whole tip must go to the driver. In an August 11 directive, the ministry told Uber, Rapido and Ola to remove such prompts. The CCPA fined Rapido ₹10 lakh for the same thing in September 2026.

The regulator said the fine is under 0.01% of Ola's roughly ₹1,060 crore standalone revenue for FY25, but argued it was still needed as a deterrent. It also stressed that people booking at hospitals, railway stations and airports are often in a hurry and more likely to pay.

Apps worth a look

SUMO: the number puzzle

Tap the right tiles, add them up, hit the target. Easy to learn, hard to master. Free, for all ages.

Tags:olaccpadark patternsride-hailingindiarapido

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