Published: Tue, June 20, 2017
Industry | By Dora Warner

Uber is (finally) rolling out tipping

Uber is (finally) rolling out tipping

Tipping on Uber is now live in Seattle, Houston and Minneapolis - and it's expected to be available in every US city by the end of July. The $68 billion startup has been roiled by a series of crises in recent months, ranging from sexual harassment allegations to an executive exodus, to a video surfacing of CEO Travis Kalanick arguing with his Uber driver.

If you've ever had a particularly excellent Uber driver - one who offers water, say, or greets you with a hand-picked selection of mints and candy - you know that the urge to tip is strong and true. In a Medium post previous year, Uber explained its reasoning against tipping. "We must update our core values, listen better to employees and riders, and prioritize our drivers", he wrote. Tips belong to the driver, and there are no service fees. For instance, on a ride over $25, riders will be shown higher tipping options ($2, $5, and $10) instead of the lower options ($1, $2, and $5).

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Historically, Uber has had a tough time retaining its drivers, as they are paid, on average, just above minimum wage and, as independent contractors, don't have benefits or many traditional worker protections.

Uber executives had long argued that the no-muss aspect of its non-tipping approach - get in a auto, ride to your destination, and get out - was one of the most popular aspects of its service with riders.

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On Tuesday, the company said it will introduce tipping for drivers, something the company has strongly objected to in the past.

Quest earnings are available for Instant Pay: Drivers will be able to immediately cash out their tips and earnings.

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Teen Fare For teen account trips, $2 will be added to the base fare and you'll earn more for those rides. In total, Lyft drivers have made more than $200 million in tips.

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