![]() ![]() Now Uber adds a guessing game over what amount - 10%, 15%, 20% - will secure a high rating. Traditionally, the size of a tip is a personal judgment based on factors such as how the customer values service, custom, and income. ![]() As a result, tipping is now a Tony Soprano–like veiled threat: “Pay up or I’ll give you a poor rating.”Ĭustomers never enjoy being strong-armed over a gratuity. In Uber’s case, drivers will know whether and how much you tip before they rate you. Customers view gratuities as payments to reward good service. The problem with Uber’s “don’t…but in case you do” tipping policy is it changes the meaning of a tip. Passengers with low ratings risk not being picked up. There isn’t a big financial incentive for drivers to strive for the highest ratings - as long as a driver’s average score is above 4.6, they remain in good standing with the company. Drivers input their rating immediately after completing a trip, as doing so is required in order to be dispatched to their next fare. After each trip, both the rider and driver anonymously rate each other on a 1–5 scale (5 being the best). In addition to the inconvenience of the extra step, which will require business travelers to collect multiple receipts for expense account reimbursements, many riders will feel pressured to be overly generous in the amount they tip.Ī key feature of Uber is its dual rider-driver rating system, which aims to keep both parties on their best behavior. While this tipping procedure sounds harmless, it puts Uber at a significant competitive disadvantage. Instead, riders will have to hand over cash or make a separate credit card transaction. While Uber maintains its policy that “…tips are not included on Uber’s platforms (except on UberTAXI), and that tipping is neither expected nor required” as part of the settlement, it retreats by adding, “…riders are free to offer tips and drivers are welcome to accept them.” Drivers are now allowed to solicit tips by asking passengers or posting signs in their vehicles.Īn important caveat is that if riders opt to tip, Uber won’t let them do so in its app. ![]() Uber has long opposed tipping, claiming riders don’t appreciate the extra hassle of adding a gratuity, as well as citing negative effects including potential racial bias (e.g., customers may leave less for nonwhite drivers). In addition to paying up to $100 million, the settlement involves clarifying the ride-sharing service’s stance on tipping. Uber recently settled a class action lawsuit brought by drivers claiming unfair wage and labor practices. ![]()
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