Ola passengers asked to pay tips to get faster rides, but data shows extra payments didn't improve confirmation chances; company ordered to pay Rs 10 lakh fine

Central Consumer Protection Authority has fined Ola's parent company ANI Technologies Rs 10 lakh for soliciting advance tips and add-on payments before cab confirmation. The regulator found that Ola's own data showed lower driver acceptance rates ...

Agencies

Ola passengers asked to pay tips to get faster rides, but data shows extra payments didn't improve confirmation chances; company ordered to pay Rs 10 lakh fine.

Passengers booking cabs on Ola were asked to pay extra amounts of up to ₹140 while waiting for a driver to accept their ride. The app suggested that paying an advance tip or add-on could improve their chances of quicker ride confirmation. The Central Consumer Protection Authority (CCPA) has now fined Ola's parent company ANI Technologies Private Limited ₹10 lakh and ordered it to discontinue the practice.

The regulator found that Ola's own booking data did not support the suggestion that advance payments helped passengers get drivers faster. In fact, rides carrying add-ons had lower driver acceptance rates than regular bookings in Delhi, Bengaluru and Mumbai.

How Ola's advance-tip feature changed

Ola introduced the tipping feature on April 27, 2025. Passengers searching for drivers were shown pre-set payment options alongside messages such as "Improve your chances of quicker ride confirmation!"


CCPA received a complaint on May 16, 2025, alleging that the feature pressured passengers into paying extra out of fear that their bookings might be delayed or cancelled.

The authority issued a show-cause notice to the company on May 28, 2025, and subsequently directed its Director General (Investigation) to examine the matter.

On May 22, 2025, Ola replaced the word "tip" with "Choose to Add On". However, the payment prompts continued to appear while passengers waited for driver confirmation.
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The suggested amounts also increased over time. According to the CCPA, they rose from ₹10–₹40 to ₹50–₹140, while passengers could enter custom amounts of up to ₹499.

What Ola said about the extra payments

Ola told the authority that its driver payment system followed a zero-commission subscription model and that 100% of the tips or add-on amounts went to drivers.

It argued that the feature was voluntary, with no amount selected by default. The company said the option was intended to help drivers accept bookings involving short trips or longer distances to reach passengers, commonly described as dry runs.

Ola also maintained that its wording suggested an add-on might improve the chances of confirmation, rather than guaranteeing a faster booking.
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What Ola's own booking data showed

CCPA examined 15 days of data from June 2026 covering Delhi, Bengaluru and Mumbai. It found that rides with add-ons had lower driver acceptance rates than rides without them.

The acceptance rate for add-on bookings was 38% in Delhi, 40% in Bengaluru and 39% in Mumbai. For regular bookings without add-ons, the corresponding figures were 62%, 68% and 68%.
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The authority also found that the average additional distance travelled by drivers to pick up passengers on add-on rides was only 100–300 metres compared with regular bookings.

During the 15-day period, passengers in the three cities paid approximately ₹56 lakh in accepted add-ons.

The CCPA noted that the upfront fare already accounts for factors such as peak pricing and dead mileage under the Motor Vehicles Aggregators Guidelines, 2025. These guidelines permit voluntary tipping only after completion of a journey.

Why the CCPA penalised Ola

The authority, headed by Chief Commissioner Nidhi Khare and Commissioner Anupam Mishra, found that asking passengers for extra payments before a ride was confirmed amounted to an unfair trade practice and misleading advertising.

It also classified the interface as "Confirm Shaming", a dark pattern covered under the Dark Patterns Guidelines, 2023. The regulator took into account that passengers were presented with payment prompts while waiting for drivers, with no option to close the prompt.

Ola must pay ₹10 lakh within 15 days

CCPA directed ANI Technologies to immediately stop displaying prompts, pre-set amounts or other interface designs soliciting tips, add-ons or extra fares before completion of a ride.

It also directed the company to comply with the Consumer Protection Act, 2019, the Dark Patterns Guidelines, 2023, and the Misleading Advertisements Guidelines, 2022.

Ola has been ordered to pay a penalty of ₹10 lakh within 15 days of receiving the order and submit a compliance report to the authority within the same period.
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