Uber App Would Add Tipping Option Under Changes Considered By City

  • Uber App Would Add Tipping Option Under Changes Considered By City

Uber App Would Add Tipping Option Under Changes Considered By City

For the more than 50,000 drivers who pick up passengers for Uber, that could boost their annual earnings by $150 million to $300 million, according to the Independent Drivers Guild, which led the campaign. You don't have to worry about payment, and you really don't have to worry about tipping.

The New York City Taxi and Limousine Commission (TLC) has announced plans aimed at forcing all cab companies that take payment via credit card to offer a tipping option. The Independent Drivers Guild estimates drivers in New York City are losing thousands of dollars because of no-tip custom with Uber rides. "The exploitation of ride-hailing drivers must end, and this is an important first step", he said.

What about you, reader?

New York City taxis and Lyft already offer tipping via credit card, but Uber now does not.

But drivers who were lured to Uber with promises of big pay and more business faced increased competition from fellow hacks who flooded city streets. Last year, it agreed to give tacit approval for drivers to seek tips as part of a legal settlement-while also distributing academic research arguing that customs surrounding tipping were arbitrary at best and discriminatory at worst. "We thank Chairman Joshi and the commission for holding Uber to the same standard as the rest of the industry on tipping and look forward to working together on further reforms to protect our city's working drivers". Some 29% of respondents say they would actually be more likely to leave a tip if they were presented with a "no tip" button to allow them to opt out, the study by Software Advice, which helps businesses choose software, found.

The New York move suggests that car-ride services are unlikely to remain free from digital tipping. "As a result, New York City's professional drivers have traditionally depended on gratuities for a substantial portion of their income". The ride-hail giant claimed drivers in NY made more than $90,000 a year, but the agency found the median income of drivers there is $29,000 less than that. That said, other respondents still tip what they want regardless of suggested tip amounts or the presence of a "no tip" option.

"[Passenger] said he didn't have cash on hand but offered me a bag of chips which I accepted", wrote one driver from New Jersey on an Uber drivers forum.

While the TLC has been careful not to name specific companies, the guild clearly designed its rule with Uber in mind.

Reacting to the call for protest, Uber said in a statement that this time, the drivers can not obstruct others who are willing to come on duty.