Uber News: Drivers Earned $600M Extra One Year After Adding Tipping

This week marks the one year anniversary of Uber joining the modern service industry. Last June, the ride-sharing company announced passengers would finally be able to tip drivers, which its chief competitor Lyft already allowed. Passengers could, at long last, give a little reward for a job well done, just as they would with a traditional taxi cab.

To commemorate the anniversary, Uber announced Thursday in a company blog post that drivers earned more than $600 million in tips during the initiative’s first year. The company profusely thanked its drivers and customers in the announcement.

“Tens of millions of people have experienced the joy of giving and receiving tips on Uber. Whether it’s a great conversation or a smooth commute, riders are eager to show their appreciation for the things drivers do to make their day. We want to make it as easy as possible to say thanks with a tip.”

Uber added the feature during its 180 Days of Change program, designed to alleviate fears about how the company conducts business. Uber drivers have fought on various fronts over the years to be recognized as employees instead of independent contractors. That distinction is important because labor laws do not apply to independent contractors in the United States.

A study released earlier this year found that Uber drivers earned a median income of just $3.37 per hour, before taxes. The tip feature encourages passengers to add onto their drivers’ potentially meager wages by making it relatively unavoidable. When the ride is over, the passenger always gets a notification on their phone asking them if they want to tip in either fixed increments or a custom amount.

Uber’s announcement also came with some trivia about tipping habits, according to TechCrunch. Customers, unsurprisingly, tip the most on Thursday, Friday, and Saturday. However, customers tend to tip the most in places like Salt Lake City and Kansas City rather than coastal metropolises.

Uber also announced this week that it would give drivers in select U.S. cities a little bit extra money if they made trips in electric cars. Unfortunately for drivers wanting extra cash, it only amounts to $1 per trip, for a maximum of $20 extra per week.