'Higher the price, higher the chance': Rapido fined ₹10 lakh over 'misleading' ride booking prompts

The Central Consumer Protection Authority (CCPA) has imposed a ₹10 lakh penalty on Roppen Transportation Services Private Limited, which operates the ride-hailing platform Rapido, for misleading advertisements, unfair trade practices, an unfair contract, and the use of dark patterns to push riders to pay more before their rides were confirmed.

The action follows a sector-wide examination of cab and bike-taxi aggregator platforms in India. The review focused on practices related to pre-ride tipping and dynamic pricing.

During its examination, the authority found that the Rapido app displayed prompts such as "Higher the price, higher the chance of getting a ride" and "Captains aren't accepting at ₹60. Try adding +10, +20, +30" while a rider's booking was still being processed.

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CCPA Flags 'Confirm Shaming'

The CCPA found that Rapido first quoted a fare to the rider and, after the rider booked at that fare, prompted them to pay more, saying Captains were not accepting the original price.

According to the authority, this created a false impression that a rider’s chances of getting a ride quickly depended on paying more. It also came at a point when the rider had already committed to the booking and had limited scope to negotiate.

The regulator held that the practice amounted to "Confirm Shaming", a dark pattern identified under the Guidelines for Prevention and Regulation of Dark Patterns, 2023.

The practice, it said, created a sense of urgency and fear that the rider could lose the ride if they did not agree to pay more.

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Pricing Slider Also Under Scanner

The CCPA also examined Rapido's "Set your price" slider and found that its colour coding influenced the rider’s pricing decision.

Raising the price displayed "higher chance of getting a ride" in green. Lowering it triggered a red or orange warning. The slider also provided more room to increase the price than to decrease it.

The authority held that this amounted to a second dark pattern, "Interface Interference". It said the design visually steered consumers towards paying a higher amount, independent of the accompanying text.

'Tip' Cannot Be A Condition For A Ride

The CCPA noted that the fare shown to a rider at the time of booking already takes into account factors including distance, time, traffic, tolls and the amount payable to the captain.

Against this backdrop, it found no justification for subsequently suggesting that the rider pay an additional amount for the same ride before it had begun.

The regulator said a tip is ordinarily a voluntary payment made after a service has been rendered and should not be presented as a condition for providing the service.

Rapido had argued that tipping is voluntary and that its matching algorithm continues to operate irrespective of whether a rider pays an additional amount. It also said the prompts merely reflected real-time negotiation similar to an offline conversation between a rider and a driver.

The CCPA rejected these submissions, holding that the timing and design of the prompts placed pressure on the rider at the moment when they were most dependent on the platform.