New Delhi: The Central Consumer Protection Authority (CCPA) has fined Rapido, the popular bike and auto ride-hailing app, Rs 10 lakh for running ads that were found to be misleading and unfair for customers.
Rapido had promoted big promises like “Guaranteed Auto” and “Auto in 5 minutes or get Rs 50”. At first glance, these ads gave people the impression that booking an auto on Rapido would be quick and reliable, and if not, users would get Rs 50 in return. Sounds good, right? But here’s where things went wrong.
What actually happened?
Instead of giving Rs 50 in cash, Rapido gave users “Rapido coins.” These coins had so many restrictions that they were almost useless for many customers. They could only be used for bike rides, expired in just seven days, and came with conditions that forced people to use Rapido again, whether they wanted to or not.
The CCPA later said this kind of practice was unfair because customers were clearly misled into believing they would get real cashback.
Complaints kept piling up
Between June 2024 and July 2025, more than 1,200 consumer complaints were filed against Rapido. And it wasn’t just about the misleading promotions, people also complained about overcharging, refund delays, driver misbehaviour, and broken cashback promises. Shockingly, almost half of these complaints were never resolved.
The CCPA also pointed out that Rapido’s misleading ads were not just a small mistake. They ran for 548 days (about 1.5 years) in over 120 cities, in multiple languages. That means lakhs of consumers were repeatedly influenced by these ads.
What the CCPA ordered Rapido to do?
In its order, the regulator said Rapido’s actions were “calculated to mislead” because the company exaggerated its service reliability while hiding key terms. To fix the issue, CCPA directed Rapido to:
· Withdraw all misleading ads immediately.
· Refund the promised Rs 50 to all affected users in cash, not in coins.
· Submit a compliance report within 15 days.
Why this matters for consumers and startups
This case is not just about Rapido, rather a warning for all app-based services in India. Digital platforms like Ola, Uber, Zomato, Swiggy, and Rapido are part of our daily lives. We depend on them for transport and food. But if these companies start making tall promises in ads and then twist the rules, consumers will lose trust.
Rapido might argue that the coins were still a benefit, but when rules are hidden and promises are not clear, it crosses into dishonesty. In a country like India, where people are becoming more aware of their consumer rights, such practices can backfire badly.
