Should You Tip Uber Drivers? Update Adds In-App Tipping
In a move that puts Uber in line with competitors like Lyft, the ride-hailing service will begin to roll out tipping for its drivers in the U.S.
The company announced Tuesday the feature will launch immediately in Seattle, Minneapolis and Houston. Uber will roll out the feature in additional cities in the coming weeks and plans to have it available for all U.S. drivers by the end of July. Uber said the company will not take a percentage of tips earned by drivers.
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The move is one of several updates Uber plans to roll out as part of its 180 Days Of Change initiative. Other improvements for drivers include wait time bonuses for passengers who take more than 2 minutes to get to their Uber, a shorter cancellation fee window and other driver-focused benefits.
While tipping long has been available from competitors like Lyft, Uber has traditionally been reluctant to make it an in-app feature. In some cases, Uber drivers have turned to tip jars or other manual options in their cars to earn extra cash for trips. The lack of tips has also been a persistent talking point for Uber’s competitors. Lyft says its drivers have earned more than $250 million in tips.
The update comes as Uber tries to polish its image after a series of scandals this year. The company has undergone public embarrassments including a leaked video where CEO Travis Kalanick berated a driver and another leaked email where Kalanick gave advice to employees who wanted to have sex during a 2013 company retreat.
Read: Why Is Travis Kalanick Leaving Uber?
Other major missteps for the company included revelations an executive got the medical records of a user who was raped by an Uber driver in India, a trade secrets lawsuit from competitor Waymo and the disclosure of its Greyball program, an effort to avoid regulators in cities in which it wasn’t allowed to operate. The spiraling number of scandals led to Kalanick taking an indefinite leave of absence earlier this month.
In addition, Uber is also processing a report about its workplace culture from former U.S. Attorney General Eric Holder. After a blog post from former engineer Susan Fowler alleged numerous instances of sexual harassment at Uber, Kalanick called for an outside investigation by Holder’s law firm. The report led to the firing of more than 20 Uber employees earlier this month.
Amid its current backlash, Uber has numerous reasons to try and stem the tide of bad headlines. Competitors like Lyft aggressively have been taking advantage of Uber’s negative press to both advertise themselves to drivers and lock down additional investors and partnerships.
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