While booking a cab with Ola, if you have looked at the option to pay extra to get a faster ride, this news is for you. Indeed, a tip of Rs 10 to Rs 140 was demanded from passengers waiting for the driver to accept the booking on the company’s app. It was claimed that paying extra money would increase the chances of getting a cab earlier. But the investigation revealed something else. It was found that despite paying more money, passengers were not guaranteed to get a faster ride, the chances of their booking being accepted were also low. In this case, the Central Consumer Protection Authority (CCPA) has now imposed a fine of Rs 10 lakh on Ola’s parent company ANI Technologies. Also the company has been ordered to stop this method immediately.
How did Ola launch the option to ask for extra money?
Ola launched the in-app tipping feature on 27 April 2025. When passengers were searching for a driver for a cab, they would find options to pay a fixed amount. Along with this, a message was also given that paying extra money can increase the chances of getting a faster ride. The CCPA received his complaint on 16 May 2025. The complaint said passengers feared that if they did not pay the extra money, their bookings might be delayed or the ride cancelled. Following this, a notice was sent to the company on May 28.
On May 22, 2025, Ola started writing ‘Choose to add on’ instead of ‘Tip’ in the app. However, passengers continued to see messages asking them to pay extra money until the driver accepted the ride. Initially this amount was 10 to 40 rupees, which later increased to 50 to 140 rupees. Passengers could also pay up to Rs 499 as per their choice.
What did the company disclose?
Ola said that the driver is paid as an additional amount. According to the company, this option can be chosen completely at one’s own free will. The aim was to encourage drivers who have to travel long distances to reach their passengers to accept bookings.
What did the investigation reveal?
CCPA examined data from Delhi, Bengaluru and Mumbai for 15 days from June 2026. It was found that in bookings where extra money was paid, the acceptance rate of drivers was lower. The rate was 38% in Delhi, 40% in Bengaluru and 39% in Mumbai. At the same time, in bookings without additional money, this rate was about 62%, 68% and 68%. During this period, passengers in the three cities paid an additional fee of around Rs 56 lakh. The investigation also revealed that in these bookings, drivers had to walk an average of 100 to 300 meters more to reach passengers.
Why was Ola penalized?
The CCPA called this practice an unfair trade practice and misleading advertising. According to the authority, it was wrong to ask passengers for money before getting a ride and to repeatedly show such options on the app. This was also considered a dark pattern called ‘confirm shaming’. In this, the consumer is pressured to choose an option against his will.
10 lakh fine to be paid within 15 days
The CCPA ordered Ola to remove all messages and options asking for tips or additional money before the ride is completed. The company will have to pay a penalty of 10 lakh rupees within 15 days of receiving the order. Within the same time frame, the authority will also have to submit a report on compliance with the rules.
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