TGPWU demands transparent fares, says tips cannot replace earnings.
Unions urge governments to urgently establish minimum transport service pricing.
- The Telangana Gig and Platform Workers Union (TGPWU) and IFAT welcomed the Centre’s clarification that tipping must remain voluntary and post-ride.
- They stressed that tips cannot replace fair, regulated fares, which are essential for drivers’ dignified livelihoods.
- Key demands include minimum base fare, per-kilometre and per-minute rates for app-based cabs, autos and bike taxis.
- The unions called for a ban on private, non-commercial vehicles being used for commercial app-based passenger transport.
- They urged immediate implementation of the Motor Vehicle Aggregator Guidelines, 2025, to ensure fair earnings and social security for gig workers.
- TGPWU welcomes Centre’s clarification: The Telangana Gig and Platform Workers Union (TGPWU), along with the Indian Federation of App-Based Transport Workers (IFAT), has welcomed the Central government’s clarification that tipping on app-based rides must remain voluntary and should be offered only after the journey is completed.
- Tips cannot replace fair fares: The unions stressed that while customers should have the freedom to tip drivers for good service, tips cannot replace fair and regulated fares. TGPWU founding president Shaik Salauddin said drivers have a right to earn a dignified income through the fare paid for their services rather than depending on customers’ generosity.
- “Tips are voluntary, fair fares are a right”: The unions said drivers should not be encouraged or pressured to depend on tips to meet their basic livelihood needs. They welcomed customer-friendly measures but maintained that fair earnings must come from a transparent fare structure established by the government and followed by app-based transport companies.
- Concerns over tipping mechanisms: Referring to the government’s August 11 order, TGPWU and IFAT said aggregators should not introduce tipping prompts before a ride is completed in ways that could create the impression that an additional payment might influence ride confirmation, driver acceptance, allocation, waiting time or service quality.
- Demand for minimum fares: One of the unions’ main demands is that Central and State governments urgently establish minimum pricing for app-based cabs, auto-rickshaws and bike taxis. The proposed structure should include a minimum base fare, a per-kilometre rate and a per-minute rate.
- Need for transparent pricing: The unions argue that a clear and regulated fare system would provide greater certainty to both drivers and passengers. Drivers would be able to understand their expected earnings, while passengers would have greater transparency about the cost of app-based journeys.
- Ban private vehicles for commercial rides: TGPWU and IFAT have also demanded a strict ban on the commercial use of private, non-commercial two-, three- and four-wheelers for app-based passenger transport. They said only vehicles that are legally authorised and registered for commercial transport should be allowed to provide such services.
- Protect drivers from exploitation: The unions called for stronger enforcement of welfare and transport regulations and action against practices they believe exploit gig and platform workers. They specifically raised concerns about the functioning of major app-based platforms such as Ola, Uber and Rapido.
- Implement Motor Vehicle Aggregator Guidelines: TGPWU and IFAT urged the Central and State governments to immediately and effectively implement the Motor Vehicle Aggregator Guidelines, 2025. According to the unions, the guidelines should regulate app-based transport services while improving earnings, transparency and social security for drivers.
- Fair earnings are central: Shaik Salauddin reiterated that the government must establish a sustainable fare structure covering base fares, per-kilometre charges and per-minute rates. The unions argue that such regulation is necessary to ensure that drivers can earn a fair income from their work rather than relying on uncertain additional payments.
- Drivers face rising expenses: For thousands of app-based drivers in Telangana, fares are the primary source of income, while tips are unpredictable and often small. The unions argue that drivers must be able to cover fuel, vehicle maintenance and everyday living expenses through the fare itself.
- Algorithm-driven pricing concerns: The organisations also point to concerns over algorithm-driven pricing and platform commissions. Without regulated minimum fares, drivers may have limited control over how much they earn from individual trips, even as their operating costs continue to rise.
- Social security remains important: The unions want the Motor Vehicle Aggregator Guidelines, 2025, to translate into practical benefits for workers, including fair earnings and social security. They argue that regulations should not remain merely on paper but should be enforced consistently across app-based transport platforms.
- Balancing passenger and worker rights: The organisations emphasised that protecting passengers and protecting drivers should not be treated as competing objectives. Customers should retain the right to decide whether to tip, while drivers should have guaranteed and transparent earnings through regulated fares.
- Government action sought: TGPWU and IFAT have called on both Central and State governments to take urgent steps to regulate app-based transport services. Their demands include minimum fares, commercial vehicle compliance, stronger enforcement and effective implementation of existing aggregator guidelines.
- Why the issue matters: The debate over tipping reflects a broader concern about the working conditions of India’s growing gig economy. Drivers perform essential transport services but often face uncertain earnings and significant operating costs. The unions believe a dependable fare system is necessary to provide financial stability.
- Tipping should remain additional: The unions’ position is that tips should remain an optional reward for good service rather than becoming an informal component of a driver’s income. Customers should never feel that tipping is necessary to ensure better service, while drivers should not have to rely on tips to maintain a basic standard of living.
- The larger demand: TGPWU and IFAT are ultimately seeking a transparent, regulated and sustainable framework for app-based transport. They want governments to ensure that platforms operate within legal requirements and that workers receive fair compensation and social protection.
- Conclusion: The unions have welcomed the Centre’s clarification on voluntary tipping but insist that it addresses only one part of the problem. Their larger demand is for fair fares, transparent pricing, lawful commercial vehicles, stronger regulation and social security. As app-based transport continues to expand, they argue that customer convenience must be matched by dignity, fair earnings and protection for the workers who provide these services.