Rapido’s '5-min auto' promise stalls, slapped with Rs 10 lakh fine by regulatory body CCPA

The Central Consumer Protection Authority also directed Rapido to reimburse customers who used the company's "Auto in 5 minutes or Get Rs 50" offer.

New Delhi: Consumer protection authority CCPA has imposed a penalty of Rs 10 lakh on ride-hailing platform Rapido for misleading advertisements and unfair trade practices.

The Central Consumer Protection Authority (CCPA) also directed Rapido to reimburse customers who used the company's "Auto in 5 minutes or Get Rs 50" offer but did not receive the promised compensation, a statement from the Ministry of Consumer Affairs said.

The CCPA took action after examining Rapido's advertisements were found to be false and misleading to consumers. The authority has ordered Rapido to discontinue the misleading advertisements immediately.

Data from the National Consumer Helpline showed complaints against Rapido surged to 1,224 between June 2024 and July 2025, compared with 575 complaints in the previous 14-month period.

The CCPA's investigation revealed that disclaimers in Rapido's advertisements were displayed in extremely small, unreadable fonts. The promised Rs 50 benefit was not actual currency but "Rapido coins" worth "up to Rs 50," which could only be used for bike rides and expired within seven days.

The authority found that while advertisements prominently claimed the guarantee, terms and conditions stated the assurance was offered by individual drivers, not Rapido itself - an attempt to shift liability away from the company.

"Such restrictions materially reduced the value of the offer and effectively compelled consumers to use another service from Rapido within an unreasonably short time," the ministry said in a statement.

The CCPA said Rapido's advertisements violated these requirements by omitting key limitations without equal prominence.

Rapido operates in over 120 cities and ran the misleading campaign for approximately 548 days in multiple regional languages. Many consumer complaints relate to service deficiencies, non-refunds, overcharging and failure to provide promised services, with most grievances remaining unresolved despite being shared with the company.

Consumers facing misleading advertisements can call the National Consumer Helpline at 1915 or use the NCH app or website to file complaints.