CCPA Penalises Rapido For Misleading Ads, Orders Refunds To Customers

The Central Consumer Protection Authority (CCPA) has slapped a penalty of INR 10 Lakh on ride-hailing major Rapido for misleading advertisements and unfair trade practices.

The CCPA had taken suo motu cognisance of Rapido’s two ad campaigns – ‘Auto in 5 min or get INR 50’ and ‘guaranteed auto ‘- and found they were “misleading” and asked the startup to discontinue them immediately.

In addition, the authority has also directed Rapido to ensure that any commuter who availed the ‘Auto in 5 min or get INR 50’ offer and did not receive the promised INR 50 compensation shall be reimbursed the said amount in full without any further delay or condition. The CCPA’s investigation found that the benefit offered was in Rapido coins rather than cash, and these coins could only be redeemed for bike rides within a week.

It was further highlighted that the “T&C Apply” disclaimer was displayed in an extremely small, unreadable font, with the guarantee being extended by the drivers personally rather than Rapido.

“The terms and conditions stated that the guarantee was being offered by individual captains and not by Rapido itself. This contradictory stance attempted to shift liability away from the company, misleading consumers about the very assurance made in the advertisement,” the authority said in a statement.

From April 2023 to July 2025, the National Consumer Helpline recorded close to 1,800 complaints against Rapido, citing issues such as non-refund of payments and unfulfilled guaranteed benefits. According to the CCPA, majority of these complaints remain unresolved.

The CCPA referred to the Guidelines for Prevention of Misleading Advertisements and Endorsements, 2022, emphasising that disclaimers cannot override core claims or conceal critical details. In this instance, important restrictions tied to the offer were either left out or not presented transparently, leading to consumer deception. Rapido carried these ads in several Indian languages for close to 1.5 years.

How Rapido Is Charting Its Growth Course

Founded in 2015, Rapido operates in more than 150 cities and reported a revenue of INR 648.1 Cr in the financial year ended in March 2024, up 1.5 times from the previous year. 

Rapido, which entered the market during Ola and Uber’s dominance in India’s ride-hailing sector, carved a niche with its subscription-led driver model.

The Bengaluru-based company accounts for 61% market share in the bike taxi space. However, with Karnataka government’s recent decision to ban bike taxi services across the state, Rapido drivers are facing a major hit. 

In the recent development, the Karnataka High Court has given a one-month deadline to the state government to clarify its stand on bike taxi norms amid drivers sitting on strikes.

In all together a separate chapter, Rapido has also entered the food delivery segment with the launch of its app Ownly in Bengaluru. Ownly is not charging platform fees, which Zomato and Swiggy currently do. The new app is charging a flat commission fee of INR 25 per order, plus GST, from the food outlets. This is in contrast with Zomato and Swiggy, which take a 25-35% commission per order from the restaurants.