Uber sought to undermine the very notion of tipping
With Uber, drivers know that they earn the same for doing the same trip, no matter who they are or where they’re from." "This means two people providing the same level of service get paid different amounts. "Whether consciously or unconsciously, we tend to tip certain types of people better than others," Uber says. Uber published a post on Medium in April 2016 that went into greater detail about the company's position on tipping. Moreover, Uber sought to undermine the very notion of tipping. The idea of a cashless transaction was paramount to Uber’s business model. A lot of people, millennials especially, liked Uber because it eliminated all the ambiguity in financial transactions. But there’s no question this is going to piss off a significant segment of its riders.
I’ve long argued that Uber should do right by its drivers and include tipping. “You told us what you want and it’s time we step up and give you the driving experience you deserve, because simply put, Uber wouldn’t exist without you,” the company states on its website. Uber says the sudden decision to include tipping is part of its “180 days of change,” which seems to be some sort of PR campaign to repair the company’s bloodied image with its primary constituency: its drivers. “This is an important first step toward a more fair ride-hail industry.” This is an important first step toward a more fair ride-hail industry.” We were proud to lead the way on this fight on behalf of drivers in New York City and across the nation.
“Cuts to driver pay across the ride-hail industry have made tipping income more important than ever. “Today’s tipping announcement is an important win for drivers and proves that thousands of drivers coming together with one voice can make big changes,” said Jim Conigliaro Jr, founder of the Independent Drivers Guild, in a statement. It needed to do something drastic, and that’s why there’s suddenly a tipping option. In short, Uber was having quite possibly the worst year that it could have. There were reports of rampant sexism, allegations of mishandling a rape victim’s medical records, and a lawsuit from a Google spinoff concerning the theft of self-driving secrets. This is a remarkable turnaround for Uber, which has been struggling in the face of multiple scandals that recently culminated in a temporary leave of absence by the company’s CEO Travis Kalanick. And if the desire to tip only comes much later after the trip has ended, fear not: Uber is allowing riders the option to tip up to 30 days later. They can either choose the pre-determined amounts of $1, $3, or $5, or select a custom amount. Riders will be asked whether they would like to leave a tip when rating their driver at the end of a trip.
So how will it work? Drivers who want to receive tips need only download the latest version of the drivers app, and then tap “receive tips” when prompted.
After the company’s product team works out all the kinks, the option will be rolled out nationwide by the end of July.
Starting today, tipping will be available in three cities: Seattle, Minneapolis, and Houston. The embattled ride-hail company announced Tuesday that tipping was finally coming to the Uber app. Even as its main rival Lyft bragged about the millions of dollars its drivers were collecting in tips, Uber stood steadfast against a growing number of drivers clamoring for tips. Do you tip your Uber driver? Uber has always prided itself on being a cashless experience, arguing since its inception that driver tips are only optional - and maybe even unnecessary.