Industry Odisha Bureau, Sept 16: The Central Consumer Protection Authority (CCPA) has imposed a Rs 10 lakh penalty on Rapido for misleading advertisements, unfair trade practices and the use of dark patterns that encouraged riders to pay more before their rides get confirmed.
The action against Roppen Transportation Services, which operates Rapido, followed the CCPA’s wider examination of ride-hailing platforms over pre-ride tipping and dynamic pricing practices.
According to CCPA, Rapido’s app displayed prompts such as “Higher the price, higher the chance of getting a ride.” It also suggested increasing fares when drivers were reportedly not accepting the original amount. The authority said the practice created pressure on riders to pay more. They classified it as “Confirm Shaming,” a dark pattern under the 2023 guidelines.
The CCPA also examined Rapido’s “Set your price” feature. It found that higher fares were shown with a green “higher chance of getting a ride” message. On the other hand, lower fares triggered red or orange warnings. The authority classified this as “Interface Interference,” saying the design steered consumers towards higher payments.
The authority also objected to pre-ride tipping, noting that tip are generally voluntary payments after a service is completed. It referred to the Motor Vehicle Aggregator Guidelines, 2025, which provide for tipping after completion of a ride.
In return, Rapido told the authority that tipping was voluntary and that its matching algorithm operated regardless of additional payments. However, the CCPA said the company failed to provide sufficient data to establish that higher payments actually increased the chances of getting a ride.
The CCPA said its examination of similar practices involving Uber and Ola remains ongoing.
