New Delhi, Dec. 28 -- The ministry of road transport and highways has tweaked cab aggregator guidelines to ban advance tipping-a feature that allowed passengers to offer a tip upfront while booking a ride. What does this mean for the companies bracing for short-term friction, and how will incentive redesign to offset the long-term impact? Mint explains.

Queries sent to Uber, Ola, Rapido and Namma Yatri following the 26 December notification did not elicit a response until press time.

Advance tipping refers to a feature on ride-hailing apps that allows passengers to add a tip at the time of booking, before a ride is accepted or completed. Unlike traditional tipping, which follows service delivery, advance tips operate as an upfront monet...