Rapido fined Rs.10 lakh over extra fare nudges
New Delhi, Sept. 16 -- Ride-booking apps that prompt users to pay more -- with messages such as "Captains aren't accepting at Rs.x. Try adding +10, +20, +30" appearing while the app is still searching for a driver-- will now have to stop using such nudges.
The Central Consumer Protection Authority (CCPA) has now said that such prompts put pressure on consumers to pay more at the very moment they were waiting for their ride to be confirmed. The authority imposed a Rs.1 million penalty on Roppen Transportation Services Pvt Ltd, which operates Rapido, and directed the company to stop using the prompts and other interface designs that could steer riders towards higher payments.
The order, dated August 31, 2026, found Rapido guilty of misleading advertising, unfair trade practice, unfair contract and use of dark patterns - design features that manipulate or influence a consumer's choice.
In a representation dated May 16, a user alleged that app-based taxi aggregator had introduced a feature prompting users to pay a "tip" to the driver before confirmation of the ride, on the representation that doing so would expedite the booking process, and further alleged arbitrary and excessive pricing during peak hours in the absence of any statutory fare regulation applicable to private cab aggregators.
The CCPA in its investigation observed that the application was infact displaying prompts such as "Higher the price, higher the chance of getting a ride" and "Captains aren't accepting at Rs.60. Try adding +10, +20, +30."
That, the CCPA said, created the impression that the rider's chances of getting a ride depended on paying more, even though the company had not produced data showing that an additional payment actually increased the likelihood of a ride being confirmed. This, the authority classified as "Confirm Shaming", one of the dark patterns identified under the government's 2023 guidelines.
Simply said, the CCPA's objection was that the app was making the consumer feel that refusing to pay more could mean losing the ride or waiting longer....
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