Booking a cab in India is about to feel very different. In a major consumer-friendly move, the Union government has officially outlawed the practice of asking for tips before a ride begins on popular cab platforms, while also rolling out a new safety feature that allows women passengers to choose female drivers. The twin reforms are being seen as a decisive step toward fairness, transparency and enhanced security in the rapidly expanding ride-hailing ecosystem.
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Pre-Ride Tipping Declared Unfair Practice
The new rules have been introduced through amendments to the Motor Vehicles Aggregators Guidelines, 2025, notified by the Ministry of Road Transport and Highways (MoRTH) on December 15. Under the revised framework, any tipping option can now appear only after a trip is completed and must remain completely hidden during the booking process.
This policy change follows earlier intervention by the Central Consumer Protection Authority (CCPA), which in May 2025 labelled advance tipping an “unfair trade practice.” The regulator had received complaints that the “add tip” feature had effectively transformed ride bookings into bidding contests, privileging passengers who could afford to pay more even before securing a cab.
As specified under Clause 14.15 of the updated guidelines, the full tip amount must be transferred directly to the driver, with no deductions allowed by the platform.
How Advance Tipping Became The Norm
Advance tipping was first rolled out by open-network platforms such as Namma Yatri in Bengaluru around 2023, primarily to attract drivers during peak demand. The model was later adopted by Rapido, followed by industry leaders Uber and Ola, all of which promoted pre-ride tips or additional payments to improve booking success rates.
What began as a driver-incentive mechanism gradually raised concerns about fairness and accessibility, ultimately prompting regulatory action.
Women Passengers Get Choice Of Female Drivers
Alongside the tipping ban, the government has strengthened safety provisions for women commuters. Under Clause 15.6, ride-hailing apps are now required to provide female passengers with the option to select female drivers, subject to availability.
Industry analysts believe this could significantly reshape the sector, as women currently account for less than 1% of the gig workforce. The mandate is expected to encourage platforms to ramp up recruitment and onboarding of women drivers across the country.
Implementation Begins, Platforms Silent
State governments and Union Territories have been instructed to implement the amended guidelines without delay. Meanwhile, Uber, Ola, Rapido and Namma Yatri had not issued official statements at the time of publication.
