Uber Driver Tip-Hustling Schemes
angelinatravels.boardingarea.com
angelinatravels.boardingarea.com
1: Google LiDAR suit 2: sexual harassment 3: driver exploitation 4: local regulation
Though you'll notice the most recent problems are higher in the list, indicating short public memory/outrage.
Do drivers really expect people using a cashless system to... carry cash? I actually had one driver accepts tips using stripe.
In general though, I've found Uber experiences to vary significantly by region. In Salt Lake, I usually sit in the front seat, drivers are chatty, and the whole thing feels like "someone giving you a ride". In NYC, by contrast, I mostly sit in the back (a lot of the time the driver will block off the front passenger seat), drivers don't tend to talk, and the whole thing feels like a cab ride.
In fact, I would guess that many Uber drivers in NYC are/were taxi drivers.
I had a guy who implied that he'd like a positive rating. Only one out of many.
I realize that EB and SF drivers probably stick to their preferred areas. I'm not disputing your experience, only adding my own.
I've stopped taking Uber for this reason for those "marginal" trips where I might be tempted for the convenience vs. public transit. I see tip begging no different than being asked for change on subway, and if I have to potentially deal with it either way I'll just take the cheaper option.
I've refused to pay for, and reported to their company, 4 separate drivers in the past 2 years for this practice. I have to assume that the companies somehow don't care that their drivers are going rogue, or else this wouldn't be happening so frequently. Where is the threat of dismissal, or even better, prosecution? Same thing goes for unlicensed taxi drivers moonlighting with a friend's car - taxi drivers here are required to hang their licensed ID on the side window, and the frequency with which you find someone driving "off the books" is downright reprehensible.
The worst part is, I feel my personal safety is at risk every time I report these criminals. They are likely to know it was me, and they know where I live. It's irresponsible, potentially dangerous, and unacceptable to permit them to operate in this way.
Our taxi companies are hook, line, and sinker in the pockets of our government. We have a history of corruption here, and taxi companies are definitely part of the equation.
At least in SF, I'm pretty sure the standard deal is that the drivers pay for the cab regardless of what they get in fares. Cabs were a cash business for a hundred years, after all.
I think the deal with credit card machines in the cabs is that the cab companies see it as a revenue source. I know cab drivers grumble about the cost of using them. It makes sense to me that Stripe is cheaper for the cab drivers.
Never give your actual address. Pick a house number a few down. Especially if getting picked up to go to the airport. Some rogue/criminal taxi/uber/lyft drivers will ask questions about your trip to determine if your home will be vacant and for how long to pass the info onto someone else who will come by to burglarize your house.
That seems entirely reasonable. If I were paying the bill in a restaurant and a member of staff insisted I paid using some personal transfer service, I'd probably refuse too unless I was able to confirm that it was legitimate.
you're also breaking the law if you walk out of a cab without paying.
Difficult to argue that's the case if no opportunity was offered to pay legitimately.
How funny, that as I leave such a taxi, not one of these drivers have risen their voice about my refusal to pay. One of them tried to retract by pulling out the official keypad, and by then I was already exiting the car as he shrugged his indignation. They are the ones in the legal wrong, and they know it.
You think the company doesn't have access to the meter records for fares if keeping a percentage is part of the deal? If the driver keeps 100% of the cash, why pay 7% for a credit card?
I know in Chicago most of the drivers who rent their cab by the hour/day/week prefer to use square because the fees are lower and they get paid in a week or less, not the couple months the cab company takes to pay them, if they ever do.
As they say at Goldman Sachs
"Always carry cash. Keep some in your front pocket."
Of course, scrolling down the thread just shows that waaay too many HNers live in their own bubble pretending to be Mr. Pink with their mightier-than-thousplaining that justifies their miserliness.
No matter how disruptive moving livery to cashless may have been, the truth remains: Uber's current business model is classic leveraging of unorganized labor in order to take advantage of a race to the bottom among drivers. Of course, this wouldn't be sustainable for a second absent Valley VC's willingness to subsidize this mirage until customers are hooked, regulators are left feckless, and then like clockwork, rates are raised with none for the drivers.
It'd be unethical, absent this sort of business being an accepted part of the marketplace. It's called hospitality, and it is driven by tipping. There's absolutely nothing new or justifiable about the type of thinking on this thread. Pool/Line are down to $2.50 for 15-20 minute rides. If you enjoy bragging about avoiding the social contract inherent in tipping economies, you are no different than Susan Fowler's HR encounters: looking the other way as Kalanick rips off those whose livelihood he actively suppresses.
The driver gets paid for distance from the first pickup to the last dropoff. If an extra fare hops in and out along the way, that's almost zero extra revenue for the driver. Thus, if you're taking a popular route, the app can charge you very little and still turn a profit.
Tipping is in no way necessary to ensure good service -- a fair wage is.
Wait, so you are saying I should start a charity compensating those poor souls who are getting tortured by Kalanick out of my own pocket? The contract for _this_ service is literally "no tip expected or required". We're not in Roman slavery times, if the drivers can't sustain working for Uber, maybe they can find something else to do in this currently great economy of ours - most of those who I talked to are new to Ubering anyway. They are not like, say, teachers who get career training to do specialized and meaningful work, the drivers utilize the most common skill to take advantage of a commercial opportunity. If this commercial opportunity is not viable in their situation, how is that my fault?
EDIT: Following some comments here, I feel I need to add that I'm in Canada where 15% is considered "normal".
The fact that you thought I was getting an ego boost from tipping is the reason tipping exist, giving people an illusion of power/status.
This kind of thinking is precisely what's wrong with tipping in the first place.
Let's break out of our echo chamber a bit. In the US, tipping isn't "paying more than required," it's basic manners. You can argue until you're blue in the face about how businesses are to blame, but the vast majority of society, who have no big beef with tipping culture, will find you cheap rather than discerning.
Canada minimum wage: https://www.labour.gov.on.ca/english/es/pubs/guide/minwage.p...
Liquor Servers Minimum Wage $9.90/hour
Edit: here are some supporting links.
15-20% suggested with 20%+ recognized as a minority opinion and for extra good service: http://www.cnn.com/2015/03/02/travel/experts-guide-to-tippin...
The highest tipping state averages 17% and the lowest averages 15%: https://qz.com/189458/the-united-states-of-tipping/
You can definitely get away with 15% at places where you don't regularly eat. I do 20% at regular places where the waiter will remember me for sure and I don't want them to get the idea that I don't like them.
20% extra on top for doing your job shouldn't be expected.
Uber traditionally operates on the service-included model. That was very well established before some drivers agitated for a change. Since then, Uber has adopted an inconsistent policy [https://help.uber.com/h/f7385bf5-1748-4fd0-a57f-3d9b62facc45]. In this condition, I don't believe users have any moral obligation to tip. Drivers should also have very wide expectations about whether or how much tip they will receive.
If drivers are unhappy with their Uber comp, they can drive for Lyft or on their own account or whatever. There is no need for riders to condescend to intervene in these labor disputes by bestowing tips, and in fact doing so may encourage the kind of abuse that inevitably follows the establishment of customary tipping (minimum wage exemptions and pressure for laborers to evade taxes).
Is this a joke? Not only is it not universal, it's not even customary. The agreement you have with the restaurant is this: you sit down, are served, eat food, and pay. Baseline service is free, that's what you're paying the restaurant for. If the person waiting on me has a problem with me not tipping, they're welcome to take their wage issue up with their employer. I can only say this as someone who supports fair wages for service industries though. I believe a lower minimum wage for restaurant/bar services is a problem. But absolutely under no circumstance will I provide a compulsory tip. It's not my job to pay the employees.
There is a secondary agreement you have with the waiting staff: if you go above and beyond your job description to provide excellent service, you may be rewarded as recognition. Even then, many countries believe that excellence to be part of the job, so tips are not accepted.
Tip if you're provided with above standard service, don't if you're not. What's hard about that?
I'll tip 30% at like an Ihop when my bill is 11 bucks because "total tips" is what matters.
Taxi drivers get $1 no matter the fare. The gall of that industry to even ask...
And even the slightest infraction of protocol and I leave 0.
I used to overtip all the time. I got absolutely nothing of value for doing it, so forget it.
This is thoroughly false. It is so customary in the US that it has been baked into the minimum wage laws: in general, the federal minimum wage is $7.25, but for waitstaff and some other "tipped" jobs, the minimum wage is less than a third of that, at $2.13. The whole system is completely appalling, but that doesn't change the fact that in a lot of places the waitstaff is effectively subcontracted out and paid for by the patrons rather than by the nominal employer.
While I'm sure most restaurants stay legal, there's a non-zero number of restaurants with owners that don't make up the missing pay and let workers end up making less than minimum wage, but the workers don't complain because they're truly desperate for work, or their local government won't do anything about it.
Now I'm remembering the Amy's Baking Company episode of Gordon Ramsay's Kitchen Nightmares where one of the owners, Samy, admitted that he takes all the tips his wait staff make, despite being illegal (Source: https://www.dol.gov/whd/regs/compliance/whdfs15.htm)
In the United States, pay for tipped employees is regulated by the Fair Labor Standards Act (FLSA), which among other things requires that they always be paid a minimum wage.
https://www.dol.gov/whd/regs/compliance/whdfs15.htm
If anyone is claiming that a particular restaurant violates the law by paying lower than minimum wage to their servers, then that's the problem right there, not anything to do with tipping or tipping culture. If anyone is not being paid minimum wages they are owed, the US Department of Labor will be happy to intervene:
And yes, it's illegal to fire someone over reporting, but it happens all the time. And it takes time for a lawsuit to go through, so you've gotta find work somewhere else in the meantime. And now you have to also take time to sue your old company. When you're barely afloat, it's not worth rocking the boat because you might drown.
That's reality for a lot of people. You can't just say, "this is the law so it's not happening."
I feel a good first start would be to get rid of the tipped-job-exception from the Federal minimum wage law and set it a fixed minimum regardless of job classification.
I am started to feel very extorted by this so I've reduced my tips in response and reduced my frequency of going to establishments that guilt me into leaving tips.
(Usually if the food is over priced I don't bother with percentages.)
This is called paying them, and occurs even in the absense of tips. Tips give people the second option of not subsidizing the corporation; were tips removed, everyone would be forced to subsidize equally. This is to the business' disadvantage only because some people are willing to pay more when it is in the form of a tip then the corporation could ask the rest of their market to pay.
You think of Uber as the employer, and yourself as a mere customer, but it is just as apt to think of yourself as the employer and the driver as your employee. If we do so, the money Uber gives the driver, as well as any tips you provide, become the employee's wage. From here we see you are paying them an unlivable wage, and should be scolded the same as any employer doing the same.
Naturally, without everyone doing the same, they would not notice the effect. However this does not constitute justification for not doing your part.
The only parties that take advantage of the driver are Uber and yourself; if Uber is unwilling to take up the mantle of proper pay then the responsibility falls on you. The question becomes: does the driver have a right to be payed properly? Or, in other words, if the driver is willing to work for a lower pay, do you have a responsibility to pay them more? Some would argue that it's a free market, and that if they don't like the pay, they should find a different job. If you believe in a minimum wage however, you should make sure that all those under your service recieve a reasonable wage.
I've often thought that it would be better to have a simple thumb up/down for quality control and then a separate above-and-beyond option for recognising exceptional service, but that requires friction on the latter option to make it work properly. Initially I was thinking just requiring a minimum comment length would work, but having to tip e.g. $1 might be a good alternative to that.
i miss in app tipping too.
i really wish lyft was available in my area.
On the other hand even with the uneven distribution of ratings, now median driver is of lower quality, you can really tell the difference between a 5.0 (really 4.95+ driver) and 4.8 driver; and a 4.8 driver and a 4.5-4.6 driver. I was a perfect 5.0 (100 consecutive perfect ratings) only twice during my career as a driver, but damn it felt good. Usually I hovered around 4.92-4.97, which can look like a 5.0 to the passenger.
There is an interesting feedback effect that a lot of drivers don't understand. If a passenger sees that your rating is lower, then they will be more in tuned to the defects in the experience you deliver; If they see that your rating is higher, they will overlook some of the problems. Moreover, if you see that your rating is low, you're more likely to have a generally negative disposition and project an attitude that is going to make it harder to get back up there. Psychological management is a key part of the driver experience. I once counseled a young driver who was distraught that he was a 4.6 average driver, leading to a generally negative attitude to his passengers (and probably some good passengers saw his score and cancelled on him too) and I told him that he needed to either break out of a negative cycle or quit driving.
This is the problem with tipping - there is ALWAYS room for abuse. I don't understand why you'd be at ease for not being "put on the spot" to tip, when the driver or company still knows afterwards. The facts haven't changed; they still know whether you tip, and any "consequences" for not tipping will still be in play. You're playing a mind game with yourself if you think that adding a few hours of buffer between service and tip is any different than tipping on the spot.
This is why, all employees - regardless of the company and its industry - should not be tipped. Pay your staff a proper wage, and fire people who do not provide good service. The very concept of tipping is ridiculous. It serves no other reason than to satisfy employers' lowballing of wage, while inducing anxiety to their customers.
> When you tip, is the driver individually informed?
No, not directly. Yes, indirectly. You get a ride summary at the end of the day. Backtracking who tipped what takes effort. Even so, sometimes people tip when they open their app back up (or through the email) which can present a lag... I've gotten "x tip from day y" additions to my ride summary days or even weeks later.
Bottom line: If you have 15-20 rides a day you're not going to check unless it was memorable. Over the course of a year and half I checked maybe five times. Once, when I drove the guy who owned the world's second tallest yacht. Another time, when I drove a group of stanford students from north beach back to campus. One of the passengers threw up in the car four times (but I was super prepared with emesis bags), so I saved the guy who ordered the lyft the $150 cleanup fee. He tipped me $20.
Honestly, a perceptive driver will be able to tell if you tip within the first few moments of your entering the car. There are socioeconomic trends. I once picked up a valet at a fancy restaurant in San Diego. We chatted about who tips and who doesn't. Soccer moms in their minivans tip. Tesla and Porche drivers almost never tip. Are you picking up someone working in the service industry? They're almost guaranteed tippers. Is someone a lyft/uber driver? Almost guaranteed to tip too.
> The next time you get the same driver, are they in a position to remember that you were a bad tipper on the last trip?
Yes, but it's unrealistic. Over the course of a year and a half approximately 10,000 distinct people rode in my car. Only about 10-15% of my rides had a tip. Do you think I knew exactly which 10% were tippers?
> Even if the driver isn't made aware of your individual tipping history, surely the company as a whole is tracking this information and building a (negative) profile for you. Do they charge you more on subsequent rides to compensate for your perceived poor history?
They won't charge you more on subsequent rides.
This is an interesting point, and reminds me in a way of the Bristol Pound (and other "community currencies") which are essentially the same as regular Pounds Sterling, but are only accepted by locally-owned businesses within a local geographical area (more specifically: anyone can accept them, but only locals can ever exchange them back to Pounds Sterling, at a pegged 1:1 rate). Local branches of mutli-national corporations, and public (listed) companies, cannot participate.
Local residents can open an account in Bristol Pounds, and pay their local taxes in them. Some locals can be paid their salary in them.
The stated goal (and this has apparently worked quite well) is a localised economic stimulus, by encouraging residents to spend at local small businesses, and those businesses in turn to seek local suppliers, etc. This sees the money doing a few more rounds locally before being sucked away to a multinational.
https://www.theguardian.com/business/2015/jun/07/the-innovat...
Frankly, I just don't understand tipping. I still tip better than most people (20-30%) because I can afford it and know that their employer is fucking them over big time. Were I a millionaire, I'd probably stop tipping altogether as a sign of protest. It's strange how we justify either side of the coin.
[0] I did once got into a very friendly chat with the "owner of the world's second tallest yacht" (checked it on wikipedia; totally legit) and was memorable enough that I was curious if he tipped. He didn't.
> ...
> I was curious if he tipped. He didn't.
I'm afraid you just dismantled your own argument with your footnote.
That does not sound very logical.
Any driver who aggressively solicits for tips automatically gets a low rating and a note from me.
Your comment makes absolutely no sense.
If Uber is going to implicitly make tipping a requirement to not feel like a jerk (as with Lyft), but without copying Lyft's ability to tip from the app, suddenly Lyft looks a lot less unattractive by comparison. Now that I know this is starting to become a concern at all, I would switch to Lyft immediately if they just added a setting for a default auto-tip that would be factored into fare estimates.
I really don't understand this aggressive, cutthroat effort to compete on price at the expense of their drivers; I can't be in the minority in considering price a secondary concern to the overall UX, so long as it isn't unreasonably inflated like taxi fares. Is it possible that the underlying model of ridesharing isn't actually particularly more efficient than the taxi industry, and that Uber/Lyft rates will naturally converge with taxi rates over time as they gradually stop subsidising rides and/or underpaying drivers?
I like Lyft's model where the driver doesn't know how much you tipped, but knows how much in tips he gets at the end of the day in aggregate... it reinforces positive service while removing any friction to tip or not.
I wonder if you used Lyft a long time ago, because I don't even notice the tip screen until next day sometimes. When I leave the car, my phone is in my pocket, or I'm already doing something else on it, so I do not see the tip screen until I happen to open the app next time. Dismissing the tip screen is a single tap with or without leaving a tip, so it's never been a usability concern for me.
I'd rather take care of the tip right away (or as soon as I have a chance) than have to remember to do it well after the fact, but in either case I'd much prefer to not have to remember it at all and just be done with the whole thing the second I step out the car. (There's also the rating thing with both Uber and Lyft, but at least that's faster and I wouldn't really feel bad if I were to forget about it.)
That, and as I sort of implied earlier the honesty/inclusiveness of the fare estimates is a concern, in that whereas a $10 estimate in Uber means exactly what it says with Lyft I have to remember to do some additional math on top of that.
(These probably sound like the epitome of "first world problems"; I'm not saying that Lyft isn't good, or even that it's dramatically worse than Uber for me — just that their competitive landscape is such that even minor usability issues like these are currently costing them my business.)
I usually use Lyft, and one reason is that I get the option to tip the driver.
Unless Johnny Cab suddenly starts asking for Bitcoin...
Uber is betting the farm on being able to solve this in the next couple of years or however much financial runway they have left. Good luck, but I don't see how.
If you're struggling to make rent, maybe you should consider doing something like Upwork or Gigster then? Or even a full time job?
Either your startup is succeeding: you've raised enough venture capital to support yourself, or you're making enough revenue to be ramen profitable (I didn't quite interpret your post that way, though).
Or you are wasting time and energy on something that just isn't going anywhere where you should be making it a fun side project alongside a full time job instead of a VERY risky 10:1 all-in bet.
Most people besides the local SF Peter Pan Syndrome millennial dreamer crowd here would consider it to be very irresponsible to gamble away your time and savings on a stagnant business like that.
There's also plenty of great places to start a business that aren't the Bay Area and actually have reasonable costs of living, friendlier regulations, and less taxes (shout out to Pittsburgh!). I'd stay off the hive mind hamster wheel here that you HAVE to be in the most expensive place to live on the planet, or else you're living in Siberia (to borrow the literal smug wording of a Google employee friend justifying their renting at age 35 situation).
Get a job, do it well, and make your startup work in the extra hours. If you can't find the time, you're not meant to be starting anything up.
"Honey Badger does not give a sh*t, if it's hungry, it's hungry"
You'll get a lot of "warm" courtship interest from investors who actually are just scoping out the field, so to speak, and you'll run into ones who have cold feet and back out at the last minute (I even had an outstanding term sheet get withdrawn once).
Just be careful. Investors are often very two-faced.
It's so much easier to just pay people a decent wage, include it in the cost of things and then not have the pressure of tipping.
That, and tipping is akin to having paid servants. i.e. "if you do a good job, and if I feel like it, I might give you some of my wad of cash. Or not, sucker.".
(Of course, I do tip because the servers rely on it, I just don't like it)
Why should service providers be subject to arbitrary decisions of random customers?
A service has a price. Either it is provided adequately and you are happy with it in which case you pay the full damn price for it and move on with your life.
Or there's a specific problem in which case you can complain specifically and ask for a discount or refund/partial refund.
From a business perspective tipping can also be seen as an admission of failure and weakness. In the sense that the business is admitting that the quality of the service is so variable that it calls for a variable judgement of its value. Like maybe you get a crappy waiter and you don't tip, maybe you get an excellent one and now you must leave a good tip.
It is also "lazy" because it dumps the responsibility to the consumer. "Just judge how well we do and tip accordingly".
Instead as a consumer I want to have certainty and confidence that a given service provided by a business has a predictable and consistent level of quality.
And also as a consumer I want the employees to not be subject to my arbitrary personal judgement on a day to day basis. If there's a particular problem I may complain, otherwise just move on with your life.
I live in London. I generally pay the service charge. Once out of every hundred times I eat out, I ask them to remove the service charge as I spent ten minutes trying to get someone's attention to order, rather than talk to my dining companions.
Service doesn't make a huge different for transport though. It's either on time, clean, and takes proper route or not.
There were certainly places I worked where any credit card tips were declared for tax whilst cash tips weren't. This is one reason why staff preferred cash. Similarly in some places cash was distributed by shift whereas cards were distributed monthly based on hours worked.
As a final point, the idea of tipping the person directly is not consistent with anywhere i've ever worked. Even when distributing at the end of a shift, everyone would have put tips in the jar to be shared between staff.
Let's call a spade a spade. It's for tax evasion purposes. That's the reason that the IRS assumes that you make 15% tips on everything if you're a server. (Otherwise people would never report it and to caught the large amount would never be recovered)
What shop do you know of where they'll let you choose food, take a bite and then pay what you feel it's worth? Hmm, this donut's a bit stale, I'm not prepared to pay anything for it thanks Mr.Tesco.
Sometimes I buy fruit and it goes bad too fast. That's life. Sometimes you get a shitty waiter, that's life, but now you get to unilaterally decide you'll get that service for free? Because there's a significant minority of people who will always find fault just so that they don't have to pay.
> this donut's a bit stale, I'm not prepared to pay anything for it thanks Mr.Tesco.
This is irrelevant. See quote from comment you're replying to.
> Sometimes you get a shitty waiter, that's life, but now you get to unilaterally decide you'll get that service for free?
No, the waiter still gets paid.
You go to the customer service desk, say "This doughnut is stale" show your receipt along with the partly eaten doughnut, then get a full refund or exchange as you prefer.
If you're doing it daily the rules will change. :)
I've gotten burned a few times when buying bags of things like potatoes and onions and not seeing a bad one in the middle that had started to infect the others. Never had a problem returning. Aldi even gives money back plus a new item
I'm skeptical of even that. There are lots of jobs with a large range of quality in industries with no tipping, and the market ends up working fine as a way for the best to rise to the top. You wouldn't tip your lawyer or a freelance developer.
Why are some industries different?
Personally I go with a $5 minimum, more if I am a bother or there for over an hour. Though, this makes me look like a jerk when people drag me to fancy restaurants, and a saint at coffee/fast food places.
So white, wealthy looking people will generally get better service by virtue of being white and wealthy looking. Doesn't matter if they skimp on the tip.
It's very racist and classist in practice.
More info here: https://www.gov.uk/tips-at-work/tips-and-tax
Tipping also seems to lead into a more in-your-face service. A waiter might find tips go up if he/she draws attention to her work, starts conversations and offers all kinds of extras. In the end you can't argue that the service wasn't outstanding, but life would have been better for everyone involved if he/she just put the food on the table.
Neither of these seem easier than "convince the public to toss in a few extra dollars when they use a lowly paid service".
I see "make sure that all working people are paid fairly" as a very difficult problem, and tipping as a moderately effective hack that's easier to implement than the cleaner fix of higher minimum wage of basic income.
US Federal law states minimum wage is only $2.13/hr for someone that makes $30/month in tips (instead of normal minimum $7.25) [1]. If they don't make $30 in tips the employer must make up the difference.
At 30 hours/week (and 4.3 weeks/month), $30/month works out to $0.23/hr, so the effective minimum wage is still only $2.36/hr.
Some states are quite a bit higher (eg Hawaii is $7/hr), and in some (eg, Alaska, California) the minimum wage is the same regardless of tips.
[1]: https://en.wikipedia.org/wiki/Tipped_wage_in_the_United_Stat...
They get, at worst, normal minimum wage.
With 100% of the amount over the minimum ("the bill") going to the staff, not the ownership.
There's sharp disagreement among the patrons on whether to keep servers in rags or riches. Some of this comes down whether the particular customer sees the restaurant as 'good for a plate food' versus 'a part of the neightborhhod'. We allow people the option of choosing which they see it as.
It feels like that because that's what it is - American tipping culture has its roots in slavery.
>Lynn suggests that wealthy Americans traveling abroad to Europe witnessed tipping and brought the aristocratic custom back with them to “show off,” or prove their elevated education and class.
[1]: http://www.foodwoolf.com/2010/08/history-of-tipping.html
> Restaurants and rail operators, notably Pullman, embraced tipping primarily, Jayaraman says, because it enabled them to save money by hiring newly freed slaves to work for tips alone. Plenty of Americans frowned upon the practice, and a union-led movement begat bans on tipping in several states. The fervor spread to Europe, too, before fizzling in the United States—by 1926, the state tipping bans had been repealed.
http://www.motherjones.com/environment/2016/04/restaurants-t...
Tipping hides the true cost of services by forcing the customer's guilt on the ability of the employee to make a worthwhile wage.
No tipping restaurants have to have higher prices and the hyper-price-conscious consumer will defer to the cheaper ones. You could make a quality argument, but on equal terms the no tipping restaurant will lose. It is because it has not hidden its true cost of goods and services like the tipping resultants.
But you are right, it is also preferred to hide some of the costs. But, sometimes you get a place that includes taxes on the price. Very refreshing.
Yea but customers don't get to decide how much employees are paid.
What would really happen is that people who normally get tips would just lose income. Their pay will probably go up, but not enough to cover it. Waitresses make much more than regular unskilled labors.
Customers lose because we end up paying more, but it's at least going to a real person working for a living.
This is very true. My sister and I waited tables in college and each averaged $20-$25/hour in just tips. Adding on the ~$5 wage, we each made enough to graduate with no debt (we both went to a state university). We did not work at very high end restaurants (we each worked at the same two at the same time).
If our employers decided to go no-tip, we would have very quickly quit and found new positions, because there's no way our employers would have paid waitstaff $20+/hr. No-tip would be a pay decrease for most of the waitstaff I've known.
If uber implements tipping, it might be exploitable by the drivers e.g you don't tip me ill give you low rating kind of thing. There is an issue where drivers supposedly make little money, but thats up for the company to solve.
Personally I use uber quite a lot in London, and I am asking most uber drivers on how they find the job etc. The vast majority of them reply that they can work whenever they want and its flexible so they like it. On the money side of things they claim that if you work properly and don't rent a car, you could be making around £2-3k a month, which is above the minimum salary in the UK and London. So I think uber drivers are mostly unhappy that they are under self-employment instead of fully employed by Uber etc. Although I can't see a company that would give you the flexibility to work as much as you want and when you want and having to pay for your holidays etc. Its more of an issue of the Gov fixing up some self-employment rights rather than uber itself (my opinion).
Edit: I'm asking seriously, why is not tipping a justification for keeping Uber? Tipping sucks, sure, but it's part of a lot of service jobs in the states that you just accept.
I don't think most people "just" accept it. I think they accept it, with extreme reservations, often with a sense of anxiety around social pressure & guilt. So I think you underestimate how much sway a service that doesn't expect/require tips might have over one that does.
Having said, that, for me, it's a combination of things. I actually don't object to Lyft's tipping culture (and like you point out, tipping is implemented as close to perfectly as possible on their platform). I use Lyft when it seems to make sense (and tip, often ~20% for shorter rides), but often I find myself seeing a 6 minute estimated wait from Lyft while Uber is saying 2 minutes. I tend to walk a lot when I can, so most of the time I use Uber/Lyft when I'm running late or don't have the time to walk, so 2 vs. 6 actually matters. Or I request a Lyft, get matched with a driver, and see an estimate for a 3 minute arrival, which stays saying "3 minutes" for 10 minutes before I cancel and go back to Uber, and a car arrives to pick me up 2 minutes later. Or there was the time where Android Pay just stopped working in the Lyft app for two weeks.
I'm really unhappy with Uber's behavior as a company (and use it less where practical), but they just offer a better product, regardless of their stance on tipping.
> I would rather pay more for each fare
However the most (at least if feels like it for me) stated reason to prefer Uber is "it's cheaper". A few also expressed the opinion that they do not care about company's culture and policies as long as they provide cheap rides.Yup, I'm merely one data point, but my POV is hardly unique.
It is a tragedy of recent generations that people cannot even handle a simple decision of to "tip or not to tip" by themselves without going to some amount of "pressure".
We are indeed, a generation of sheep, who cannot be expected to make a simple decision all by themselves.
Uber's model feels like it's trying to make the human driver into a robot. Until we have actual robot drivers, I prefer a system that has the tipping built in, e.g. Lyft.
People who refuse to tip are trying to prevent this abuse. Asking for employees to get a fair wage for the work they do should not be dismaying.
What's dismaying is how many people in this thread don't even want to have to think about how the person driving them is a human being, often just trying to make ends meet.
The problem is, this argument could be applied to all minimum wage workers.
Should I tip the cashier at McDonald's or Wal-mart? They're not making a living wage and are probably struggling to make ends meet. How about the guy that pumps my gas (I live in Oregon where it is generally illegal to pump your own gas)?
And that's what really gets me about our tipping culture in the USA. We're so inconsistent about who we think we should tip. It's completely arbitrary.
More like the thought of being expected to fork over extra cash for a standard transaction above what I already expected to pay up front. The problem is that the idea behind tipping has been abused. The onus needs to be on the business owner.
I've had drivers call ahead to ask where I'm going. I just hang up on them, cancel the ride, then order another ride. While I'm in the car with a new driver, I report the incident using the in-app system and, on many occasions, they even grant me a credit!
Similarly, I've had on at least two occasions where the drivers did obviously stupid, unsafe things within the first 30 seconds of a ride. I ask them to pull over, and I just quietly get out of the car, report the incident, walk away, and order another driver.
But otherwise you're absolutely right. I have taken rides from two people who've called, asking for my destination, and I refuse to tell them. It hasn't caused me any problems in those two instances.
This is simply not true. I just checked: My rating is 4.73. I've probably taken a few hundred rides with Uber. I assume they adjust ratings for bad experiences, especially if you're a regular rider.
By the way: It's not that hard to get consistent 5 stars as a passenger. Be respectful of the driver and follow these steps: 1) Say something like "Hi, are you looking for Brandon? That's me. Good evening. How's it going?" 2) Suffer less than 20 seconds of smalltalk 3) Go about playing with your phone or talking with your co-passengers quietly. 4) Say "This is my stop right there by the red car on the right. Thanks a lot, you have a good night!" - If you're an extrovert, you'd do this anyway (assuming you're not an asshole) and if you're an introvert, it's a good opportunity to exercise your smalltalk with low stakes.
How could you possibly know this?
http://valleywag.gawker.com/we-asked-you-for-your-uber-score...
Many drivers will rate passengers 4 or below if they don't tip. And many drivers skip passengers 4.5 or below, some start skipping passengers at 4.6. I posted some quotes from the discussion below.
I don't think it's about averages, it's about perception. Drivers know that they get fired at 4.6, and they know that most passengers and drivers give 5 star ratings regardless.
Drivers have to rate riders before they get their next ride, so every rider gets rated by every driver they pair with.
Lyft states (at least they did) openly that a 3 star rating or below will ensure that the driver and rider are not paired again, and will prompt for a text entry explaining what went wrong.
I don't disagree that the rating system is broken. But it is what it is and it's not likely to change soon.
> I picked up a 4.5 tonight and guess what is was a 4.5 type of ride. 2 stars bucko
> 4.5 or below are usually problem passengers in my market
> Usually I'll pass on anyone lower than a 4.5.
> I check the score and if they are below a 4.6 I text and inform them that THEY need to cancel and request another driver.
> 4.6 and below? Sorry about your luck. Let the next Uber driver pick up your $2.40 non tipping ass.
> I'm hesitant about anything 4.6 or below (depending on if it's a slow night and other factors).
> i'm usually skeptical of rides under 4.8, but accept trips at a base of 4.5 in the mornings. most of those folks i've chalked up to being bad drunks, and decent during the day.
> If I'm knackered I'll reject a 4.5 or 4.6 as I'm too tired to put up with potential crap.
> I skip anyone below a 4.5 unless it's really slow and I'm desperate.
I'm amazed that doesn't backfire. Skeptical, in fact.
My response would be:
"Nah, you can cancel. I can always walk back inside the bar and grab a few more drinks, while you can't operate your source of income until you cancel."
No way am I gonna optimize my behavior to get some higher 'rating'.
Sure I don't chat with taxi drivers unless I feel like it but you at least say 'hi' and 'thanks' when you get in and out, or not?
Edit: that said, the quotes from Steeeve below do start to sound pretty Black Mirror
It looks like you get charged $10 for canceling now, after 5 minutes of having a driver assigned.
I'm glad there is the Uber alternative!
Uber drivers have called me and said that they want to go to the airport, not anywhere within the city, and then driven in circles, &c.
Uber will often give you a credit when you report this but they don't seem to be actually fixing the problem.
A lot of the time the traffic conditions mean that after costs (I assume $0.40 per mile costs for mileage, gas, maintenance, etc.) my hourly is closer to $8 an hour (because after I drive for a while sometimes I need to drive a long way back as well on my own dime), which is below minimum wage. That's not including having to pick up plastic bottles after people or cleaning seats so they don't smell like sweat.
It's basically never worth to pick up anyone who is going far away from your house, you end up actually driving for free since you have to drive there and EVENTUALLY drive home. Why do you think Uber drivers don't want to drive 40 minutes away just to get paid less than if they drove for 40 minutes inside their own city? I'll never accept a ride to San Francisco (40 minutes away) ever again, it's never worth the price unless there's surge pricing in effect.
If I make $8-12 an hour, getting a $1 tip is like a 10% increase in my wage. I don't badger people for tips, but if I got like 10% of people to tip me, it would be super worth. The one tip I got was $20, btw. Even if we assume a 12% tip rate up from 2% if I ask for them explicitly, and the average tip size of $5 (median would be more like $2, but if I get a few more $20 tips the average would be higher than the median), I would make $0.50 more per hour which is a 5% increase in my earnings.
Maybe it's something I should actually start doing.
they can't advertise higher rates than Lyft or they'll lose the price war
I'll happily give a bartender, server or a driver an extra buck or two when they make the experience pleasant/informative/friendly because, far too many people treat their jobs not as a privileged but a chore.
Without tipping far too many would take your money for granted and the quality of service would decline across the board because there is zero incentive to provide anything better.
I don't mean to sound flippant but, have you ever been to Europe? I've traveled to Germany, Ireland, Finland, and Iceland multiple times. None of those countries has a tipping culture and the service I receive, even at your basic fast food restaurant, is the same or better than in the States.
I must ask, why do you believe your statement to be true?
In a capitalism steeped melting pot, it does seem like things that might be more commonly 'seen'/appreciated in other cultures - pride in one's work, common standards of politeness, sense of serving/interacting with 'your community' rather than just 'anonymous strangers from other communities' - that could be non-financial motivators for good service elsewhere that are simply missing or too few & far between here.
I've seen you guys use this one for healthcare, too.
I assure you that Australia and Europe are also capitalism-steeped melting ppls.
http://nymag.com/scienceofus/2015/10/psychological-case-agai...
In other cases, I just want a ride home. I don't care about being regaled with tales, or how hyperoptimized the route is, or fake friendliness, or even refreshments. I just want to know, unambiguously, what it takes to satisfy my obligation for this specific service, and reasonably expect that the provider is on the same page.
Uber wanted to create a special zone for exactly this, and make expectations as clear as possible for everyone going in, and yet that still isn't good enough for many people.
(Though, FWIW, I think they also abused their position by driving rates insanely low.)
I've eaten out hundreds of times in my life, never left a tip, and never thought I needed an incentive system directly between me and the waiter. Same with taxis.
There are only so many ways to screw up bringing food to a table. I've never once though "wow that waiter really brought my plate to me badly".
Why not apply your logic to everything? Why not change hairdressing to a tip system? Why not surgery? Why not painting and building? You'll get better service, right?
Yeah, it's crazy and dumb and not changing drastically any time soon.
It's so arbitrary though, order a Pepsi from McDonald's no tip, order a Pepsi from a pub, $1 tip minimum. Tip the person who hands you a bottle of beer but not the person who makes your sandwich.
(Self serve soda machines are common now in fast food, but when I worked at McDonald's we poured the soda, no machines, and no tips)
As an outsider, it's all quite insane especially when the baseline isn't 0% but more like 15% for default service in many situations. Or a $1 tip for something ridiculously basic at a bar like getting post-mix soda or uncapping a bottle of beer as you said.
Though I usually do tip at fast food or fast casual (if there's a tip jar or a spot on the CC receipt), and always tip at a coffee shop.
But the others, yeah... spot on.
The beverage pouring thing is especially insane; I'd never thought about that before. At a bar I'll usually tip 20% for a cocktail, but only 10% or so if I'm poured a beer or soft drink. But even that 10% is crazy when you wouldn't tip a fast-food cashier for pouring you a soda.
To compare apples to apples, in a sandwich/coffee place in the US you're still expected to tip the standard amount, even if your change from a cash payment falls short. And not tipping at all in those situations is considered bad form.
I'd say the European system is far preferable, but I like Japan the best: a taxi driver would be nearly offended if you tried to tip them. I had one get out of the car and nearly chase me down because I got out before taking my 30 yen in change.
Just charge what it costs to provide a living wage and don't require or expect a tip, ever. Remove the social stigma associated with being cheap for not tipping. In the US, eliminate the comically-low minimum wage for tipped staff, and make them pay the regular minimum wage. To ease the transition, reduce payroll taxes for such businesses (tips aren't subject to payroll taxes) so they don't have to jack up prices 30+% to compensate. I know this will never happen here, but I can hope...
To be honest sometimes I'm anxious when my bill ends up some number that's hard to tip from; but if I don't tip, nothing will happen.
No, good service and hospitality are literally what your base wage should cover.
If your service job doesn't pay well enough to for you to provide good service and/or be a decent human being, perhaps you should seek out a less service-oriented job.
Homosapeanless Carrigages
You know what would happen if they raised the rates and paid more to the drivers? Two things - fewer riders would ride, and more drivers would drive. You would end up with a lot of drivers sitting around not getting any rides. They would most likely end up making LESS money per hour because they would not have enough riders to drive around.
Or, alternatively, everyone is making the correct decision and there isn't an imbalance anyway.
We really, really, need to address this as a society soon.
Why? Why do that? My guess is that it's easy work to get and it gives you some immediate cash, and so it's more appealing than spending the time hunting for a 'real' job, but I've never heard an Uber driver actually admit that.
I drive around, worrying that I don't get dragged into Los Altos (nobody wants rides OUT of Los Altos late at night - they're all coming home). Sometimes I will drive for a few minutes picking someone up before they cancel. If I didn't get far enough to pick them up I get no money for this. I finally pick up the person and try to make conversation with them. They're not always willing to talk, but I understand.
After driving for a while it gets too late to get too many requests. I start late because driving in traffic is a horrible hourly rate.
I had to deal with app crashes, the maps app being wrong due to changes, people putting the wrong address, people not finding my car and calling me in a noisy place etc. Some people don't like this because they think I'm a full time driver and I'm supposed to know how to deal with these situations. I'm not a professional. I never received any training by Uber. I don't know every single street in your neighborhood. I don't even have enough experience doing it to know how to deal with every situation.
So I would use the odometer to see how much I actually drove (Uber doesn't count picking up as distance - a hold-over from taxi companies). I calculate my profit using the amount of miles, and minutes (I time when I start, not when I make my first pick-up). When I see a single digit number it makes me disappointed yet again. Even when I'm driving at football games it's still more like $12 an hour because of the damn traffic. It's 3x more expensive, but it takes very long to get out of the parking lot and to get into it.
Don't even let me get started on star ratings... giving an Uber driver 4 stars basically says "this person shouldn't be driving with Uber" since the minimum rating is like 4.3
Yes, people prefer to make a little bit of money instead of not having money. This is surprising?
And when someone earns a little bit of money, they might wish that they made more money. Again--not news.
I think before getting critical about why Uber drivers are so dumb, it's worth thinking about why you don't drive for Uber. The answer probably starts with "because I don't feel like I have to." It does for me.
If someone has a great highly-paying full time job and still drives for Uber, then sure, question that person's judgment. Most Uber drivers are not in that situation though.
Nobody wakes up in the morning and says "today I'm going to drive for Uber literally for free." Of course not. Let's use a little common sense here.
Uber drivers expect, plan, hope to make money. The point is, they don't make much, and sometimes it's very little (like on a long fare).
So the question is, then why do they keep doing it? And I'm just suggesting that maybe a lot of them don't have a higher-paying alternative that they are dumbly choosing against.
This still doesn't make any sense. If you are losing money working for Uber, then you do have access to a higher paying alternative - which is literally standing in your house and doing nothing. Because zero is greater than a negative amount.
I think there are really three explanations that make sense:
People are not literally losing money working for Uber, or maybe they are sometimes but not overall at the end of the month, and they're just rhetorically exaggerating in frustration.
People are literally losing money working for Uber but only when you include depreciation of their car, and that is a long term cost, so people are effectively taking a loan from their future selves.
People are literally losing money working for Uber but morally feel that they should be working rather than not working, even if there is no economic reason for them to do so, and they just hope their situation will improve in the future.
I believe this is it. They need money now, Uber is better than a payday loan but yes, they are mortgaging assets to make some cash now.
People are literally losing money working for Uber but enjoy driving as a hobby, and Uber helps them recoup at least some of the costs of driving around all the time.
(yes, I've had drivers tell me they do Uber/Lyft for fun because they love driving)
I'm just perplexed when they say they're losing money (or making so much less than minimum wage that they may as well be) but they keep on doing it instead of stopping. If they're not just blowing off some steam with hyperbole, they would literally be better off staying home on the couch.
Most people don't drive Uber as a job. It's a second or third job. Make-you-own-hours is what makes that possible.
> If they're not just blowing off some steam with hyperbole, they would literally be better off staying home on the couch.
I mean, ditto for payday loans -- you're better off not having the money. Unless you actually need the money to make rent. Then you're screwed.
Uber is better than payday loans, but if you're depreciating your car at a faster rate than you're making money, you're still up against a negative expected value.
Landlords use depreciation to have low taxable income despite being cashflow positive. I don't see why Uber drivers shouldn't be able to. They're making business use of a physical asset (their car).
Example 10-mile trip: 1.25 base fare + (10 miles * 1.15 per mile) = 12.75 * 80% (driver's share) = $10.20 revenue - 5.40 deduction for mileage = $4.80 revenue reported. For somebody in 20% tax bracket, this could yield $1.08 in savings.
Although using the per-mile deduction negates the ability to deduct line item expenses, such as gas, car washes, etc.
Something like - your car cost $30,000 and depreciates over 10 years, so $3,000 per year (just making up numbers, no idea if/how the IRS depreciates a car). So you'd have a $3,000 loss in the value of the car per year until it drops to 0. If the car was used 40% of the time for business (driving for Uber) you could claim 40% of the depreciation - $1200. I guess then you'd have to separately itemize all the gas, maintenance, etc.
But if you're actually losing money on the Uber-driving endeavor when that is factored in, whatever revenue you get should be tax-free. Of course, I suppose that only works if you're an independent contractor / business, and Uber drivers fought so hard to get treated as employees instead. Oh well. Employees get screwed when it comes to taxes.
There is significant utility in owning a car. So much so, in fact, that many people are willing to take on the entire cost of ownership without ever earning direct income as a result of their driving.
It seems like this is something they could help with. Can't they mark your home territory and try to schedule you rides that take you the right direction? If not immediately, maybe after a few rides in that area that don't take you too much farther away? It seems like this should be one of the main points of using Uber or Lyft, smart driver scheduling in areas where there's enough demand..
they had this feature
unfortunately, NOBODY LEAVES SAN FRANCISCO so it's pointless, you'll be waiting for someone to want a ride south for a very long time
they've since removed that feature because it hurts your bottom line to use it
Why would you wait long? It's not like the system doesn't know where you are. Just start driving back, and if someone is around that needs a ride that direction, deliver it to someone already heading back to home territory in the same direction. Worst case you don't get anyone and drive back without any fares. All it should take is a slight bias towards those traveling back from long drives if it's going the same direction.
Because while there ARE people that are driving south, other Uber drivers are closer than me to them.
> Just start driving back, and if someone is around that needs a ride that direction, deliver it to someone already heading back to home territory in the same direction.
I tried that. Every single time I did it, I ended up home before Uber found anyone. The only time the feature was useful is getting closer to the freeway that I was going to take.
If the service instead allowed drivers to designate a "home zone" where the base price is payed, and then trips to successive neighboring zones have a multiplier applied, this would probably work better.
Perhaps limit the "home area" designation at the end of the day. So before someone is "ending" their day, they can click a button and service only in their home area.
That way, the usefulness of the service is not compromised as much.
I use payment-in-app services in part because I don't like carrying much or any cash around, and when I do, it's usually just a few $20 bills, which aren't very useful for tipping in this scenario.
And yes, I do tip in-app when I use Lyft, in part because their social contract includes tipping, and I can do it without the on-the-spot pressure of needing to do so in the car. Uber explicitly states that tips are not expected or required, and does not provide an in-app way of tipping, so I wouldn't tolerate tip solicitation from a driver. (Hell, I wouldn't tolerate tip solicitation from a Lyft driver, either. Asking me for a tip when the app does it for you counts as "worse service" to me.)
I agree with the author. Tipping is out of hand. Charge more for food, clearly state it on the menu/check, remove the tip black on the receipt and pay people a decent wage!
It's the worst when I'm picking up takeout from a restaurant that also has tables. Like, am I supposed to tip in this scenario? Do I have to go into "other" to tip less than 20% for being handed a brown bag?
I do tip from time to time at places where I'm a regular customer. If I get takeout somewhere near work of home ~4 times a month I'll drop a dollar in once every couple of trips.
2. At gas stations outside of New Jersey and Oregon, I had always thought you were supposed to tip when someone pumps your gas for you.
No one likes tipping, but it's become a moral issue. Something transformative has to happen in America to change the situation.
I hate that even that is required, though. I would gladly pay an extra 15-20% for the food itself if I didn't have to leave a tip & the staff was paid the "normal" minimum wage, or more.
Yes, of course, you go into other and select 0%. You don't need to tip someone for handing you a bag, and prompting for a 20% tip is shameless.
Why would you tip a taxi?
Locally even here in rural Idaho, one of our best local restaurants recently switched to no-tipping pricing. I'd say that as a diner, I _feel_ like I'm paying more for my meal, even though I always tipped at least 20% before the switch.
As someone who grew up in a "tipping culture" I'd say that the act of tipping doesn't bother me, so much as the pain point of having cash in the correct denominations for things like tipping Uber drivers or valets.
Not to mention being variable on a city, county, state, and industry (hotel tax, for example) level!
So sure the general rule is this percentage is for service, but what constitutes service as opposed to the job I'm paying for in the given price?
Full table service restaurant, ok I can handle that.
Taxis... apparently, sure... but again why is there a service component separate to the fare?
Fast food joint. No they don't really do much that constitutes service. Ok fine
Restaurant where you order and pay at the counter but they deliver to table... umm I'm not sure now, plus if its service shouldn't that be judged after, not before?
Bellhops/Luggage people at Hotels.. Apparently yes, but I've had many just out right refuse to take it. Or better yet, I don't have a huge amount of bags, I don't actually want your service of bag carrying (separate from the money thing), but you're insisting and now I'm in the corner on this one.
Massages or beauty therapies.. Fuck knows. Apparently yes. but if I'm tipping you for a fantastic massage service, what I'm I paying for strictly speaking?
YumCha places (Many servers) Hah... good luck working that one out.
There's more I've encountered in my time where I just didn't know and it wasn't readily apparent how/if it worked that way.
It isn't clear cut and definitely for foreigners coming in, its completely impenetrable whether you should or shouldn't.
Everything seems more expensive in Europe, but at least you're paying prices that already include VAT.
One thing I think it would do is harm the perceived cost of uber rides. Partitioned pricing works. Anchoring users on a lower base fare + 20% service, is, unfortunately, "cheaper" than 1.2 * fare for most people. At minimum Lyft would have to agree to do the same.
Not quite. By "welfare for Uber", they meant the burden of compensating the driver shifts from Uber to the passenger themselves, rather than on Uber to the driver a "fair cut" (whatever that may be).
https://help.lyft.com/hc/en-us/articles/213815618-Lyft-Commi...
"Lyft takes no commission from tips, which passengers can add easily through the app. That's right — drivers always keep 100% of tips, whether it's a buck or a Benjamin."
über barely scrapes the minimum of a viable living for their drivers because they exploit the desperate.
With drivers who have seemed friendly enough I've tried to politely and diplomatically inquire about how fair they feel the system is. Several ex-taxi drivers have told me it is better than driving for an official taxi company in every way, including pay. (Note that taxi drivers are never tipped either.)
I have been surprised by the number of people who have been driving for Uber as a bit of cash on the side, and not as a primary income -- all of them have told me it's "worth it" except for learning a lesson early on not to drive late at night and pick up drunks, as the chances of having to clean up after an extremely messy fare is too high.
Tips go directly to a person. Often a low paying or second job. It is about generosity and helping a fellow person. It's not about economic theory or even JUST how they served you.
The tip -$1 or $2 or $5 gets the person a gallon of gas. A meal. A cup of coffee. It helps pay off a bill. It is savings for their childs prom dress. It pays for food.
It allows the tip receiver to be generous themselves (1). To have extra to tip others. (The largest tippers are or were poor) One of lifes most enjoyable things is to be generous.
Tipping shows a lot about the tipper, too.
If Tipping to my fellow HNers is only about placing a value on the service given, then I say you don't know the entire story of working a job where tips make a real difference.
Ask your next uber driver why they are working.
(1) last month I had a fellow give me a $200 tip. The next night a neighbor came over and said her mom just died. She used to live with her and now in a home. Eventually she asked to borrow $20. Well. I don't ever have an extra $20 anymore but I was able to give her $100 because I got the tip.
I don't think this solution helps tipped workers either. But I'm not going to be guilt-tripped into giving people money.
I, too, am trying to avoid full service restaurants for the most part.
Now being highly persuaded for a tip I don't agree with but this is actually more of a general problem.
Just look at the sleaziness of online advertising and email marketing! Hey thanks for you order but can you review this and buy some stuff from us! Buy Buy Buy!
Then shouldn't Uber be generous and pay their employees more?
>Ask your next uber driver why they are working.
They're working for money, come on man.
This does not mean you shouldn't tip extra if the service was great, amazing, etc., but just something to be aware of.
Pooled tips across both parts of the house are a step forward on a broken system. It is unfortunately very difficult to do legally in NY.
When/if lots of customers start regularly tipping, I fear Uber will just take advantage of the situation to reduce wages even lower -- untenably so. This will end up forcing all drivers to be completely reliant on tips. And once that happens, there's pretty much no going back.
This is an opportunity to have a major service that finally does away with tipping in the US. I don't think we should bend over backwards so easily and just give up on that possibility.
By using Uber and knowing they are underpaying, aren't you contributing as well?
In the end by tipping you I'm essentially subsidizing Uber and enable them to pay you less.
I still don't want to be guilted into leaving every person I interact with in a day money because their employer doesn't feel like paying them for doing their job.
The more you tip someone the less their employers pay them.
Wouldn't you prefer a steady paycheck to relying on the kindness of strangers to be able to pay rent?
Where does this madness stop? Since you are personally so virtuous, do you also tip the cashier at Walmart every time you buy deodorant? The shelf stocker? Deli meat slicer operator? The person bagging your groceries? McDonald's employee who made your Big Mac? Do you walk into the kitchen to slip a Washington into the cook's pocket? The person at the bodega who made your sandwich? None of those people make much.
How about the receptionist at the doctor's office? Your doctor? Your mechanic? Pharmacists? Pharmacy assistant? Bank teller? Theatre attendant? Garbage collector? Police? Mail carrier?
How about the adminstrative staff at your office? Do you slip them a few bucks for scheduling your meeting and emailing you the meeting minutes? The cafeteria staff?
There's many low paid people who don't interact with the public. Do you mail a check to Amazon's wearhouse for the people who packed your Christmas gifts? What about when people provide customer service over the phone or Internet? So you reply to emails you get with your credit card number to tip the email sender?
>The largest tippers are or were poor
This isn't even remotely true, people use tipping to signal their power and wealth. It's a social signal. It's classist. It is not a bunch of poor people passing around the same $5 to each other.
>One of lifes most enjoyable things is to be generous.
I don't find being guilted into paying other people's wages to be either generous or enjoyable. I don't find turning every interaction into a business dealing to be enjoyable. I don't find living in a society where people won't do their job without not-so-subtile bribes enjoyable or something to strive for.
Do you want to live in a society where it's ever increasing amounts of customer extortion over legitimate customer service?
I don't think highly of people who enjoy throwing coins at those "below" them and enjoy holding that power over them. The people who enjoy pulling out a $20 to "make sure they are taken care of" that day are not generous. I have some unkind words to describe such people.
Oh, by the way, I intend to leave my entire estate to charity. I am not an unkind or stingy person.
I worked for about a dozen restaurants, bars and clubs back in the day. I lived in some of the shittiest places imaginable (in the US,) including 3 weeks in my car parked outside the low-rent, skank-infested strip club at which I DJed.
I get it; life is hard. However, tipping isn't a "charity surcharge" -- it's to reward service that went beyond the service you agreed to buy. A gardener watering my plants doesn't get a tip. A gardener helping find an escaped dog -- definitely.
I donate to charities I care about. I pay my taxes. I ensure the team I have working for me now gets paid before I do. I definitely don't need to be admonished that because I am a white guy that makes a bit of money now that somehow I don't understand the plight of those in service industries.
The great majority of people on HN aren't Stanford grads born with silver spoons -- nearly all of us worked our asses off to get the luxury of writing code or making companies.
Regardless of all that the implicit requirement that we tip as a form of charity is nonsense. The reason low wage people don't have a 'living wage' is because the supply of their labor is greater than the demand. Nothing will change that unless we implement a Soviet economy. Even Sweden has a poverty rate of 7% -- the U.K. is at 10% -- Spain is at 15%, France is at 14%.
The idea that "living wages" or tipping somehow makes any difference in poverty is not supported by facts. If we want to really help the poor, we should be supporting a culture of entrepreneurial freedom instead of excessive regulation. Some lady wants to sell tamales out of her house -- legally she can't do it without a health inspection and a permit. So someone that could have the means to start a small business with just a few dollars and some labor can't do it because of all of the barriers to entry. Some guy wants to cut hair on a street corner -- he can't do it without a cosmetology license. Some family wants to use the family car to pick up people at the airport -- they can't do it without permits, licenses or approvals.
Promoting micro-entrepreneurism would have a far bigger impact that tipping an Uber driver $10.
But the same people that love to virtue-signal often happen to be the same kind of people that support increased government regulation in all aspects of society. We're so busy protecting people from themselves that we stifle any ambitions they might have to attempt to improve their lot.
I highly recommend you check out this video: https://www.youtube.com/watch?v=q_vivC7c_1k
Tipping doesn't really say much about a person other than how easily they fall for societal pressure and guilt.
> The tip -$1 or $2 or $5 gets the person a gallon of gas. A meal. A cup of coffee. It helps pay off a bill. It is savings for their childs prom dress. It pays for food.
I am not your employer; it should not be my job to figure out what is required to pay you a living wage. Your employer should be doing that. It sucks that they aren't. I wish I could fix that.
> One of lifes most enjoyable things is to be generous.
That's just, like, your opinion, man. And if it's so enjoyable to be generous, why isn't Uber enjoying themselves by paying drivers more? Why is it my responsibility as a rider to fill in this gap?
But yeah, I do agree that it's enjoyable to be generous. But you know what's not enjoyable? Being subject to guilt and societal pressure to tip. "Being generous" is not "being generous" unless it's completely voluntary. Tipping is not.
I donate to charitable organizations not because they ask me to or because I feel pressure to do so, but because they further causes I believe in and want to support. That generosity is something I enjoy. Tipping just makes me feel anxious and like I'm getting ripped off by having (yes, having) to pay more than the advertised price.
When you're giving a tip, you're effectively giving money to the people who own the company (or participate in profit sharing). Tips allow employers to pay their employees under market rate. By paying enough tip to bring the employee's wage up to the market rate, you are subsidizing the company's profit, not the employees profit.
Tips are bad for employees because they are inconsistent, bad for consumers because the price of goods are not well-indicated, and good for employers because it allows them to offset their labor cost by hiding it in tips, which they have convinced consumers are going to the employees as a perk.
So I don't know that I agree that the Uber app should implement tips (from a consumer or an employee standpoint). They should charge me more money (or rather, charge me the same as I am paying now, just make it more consistent), and pay their employees more money.
I wish they would do both of these things.
I am failing to see how the tip model helps the employer more.
[1] as well as "the presence of people who deliberately flout the expectations" and whose non-payment must be made up, in expectation, by more honest customers.
I wonder how this came about? Like was this something a clever businessperson invented at some point? It sounds like the US is the only place with a tipping culture like ours.
In fact, I think, ignoring the tax evasion effect, the tipping system reduces profitability, because it scares away business by that "compensate-for-unpredictability" tax, which takes from what could be restaurant revenue.
This was AMAZING for me, the employee. If I was an hourly worker, I doubt I would have gotten paid over $10/hour.
Obviously the much more common case is where the tip would not be replaced by the employer. So in that case if you don't tip the $5, the waiter is just $5 poorer. The restaurant's profit isn't affected one cent.
Even though the former model offers stability and fair pricing, there are some outperformers in the tipping world which must take pride in their customer service skills. If no-tip and tip business coexist in the same industry, the adverse selection bias kicks in and the no-tip business gets stuck with average employees at best.
Go to a country where hospitality staff are paid a 'fair' amount and customers aren't expected to tip and this problem goes away.
This is already the case at the vast majority of restaurants I frequent. It's not as horrible as you make it seem.
A significant upside that I don't see getting enough attention in this thread is that you don't have to worry about whether or not staff (front and back) are having their wages and/or tips withheld. This is extremely common in California when workers are being paid under the table.
I'm not sure why you don't think that tips are the only incentive for businesses to have good customer service. Places with poor waitstaff drive customers away, and that restaurant goes out of business or the waiter's fired.
Also, really really slow! They gotta show off their serious "oh mx customer, look at what a unbelievable level of service I, your server, am giving you, the money-haver, right now" while 10 more people patiently wait in line for their turn on the throne.
I much prefer surly service, if it means I can get my coffee and get out on my way a minute faster. That's time I could be spending with my loved ones.
Let's just take restaurants as an example. You say "tips allow employers to pay under market rate," but that can't be the case as a matter of logic. The market rate is _defined_ by what employers pay employees-employers as a whole simply can't all be paying below market wages or else the market rate would just be lower.
Perhaps you mean, "less than the market rate for similarly skilled labor in non-tipped sectors" (shoe sales, as an off+handed example). The question then becomes, "are the workers' skills in these sectors transferrable? Could workers simply change jobs if offered higher wages elsewhere?"
If so, then it follows that we can assume that the negatives you mentioned, like lower wages and less predictability, would drive workers out of the tipped sector and into the non-tipped sector. This would drive wages back up in the tipped sector. We don't see that.
What I think we see, and I admit this is a little anecdotal, is that restaurants (in healthy markets) are quite easily able to fill their positions. In fact, there's competition _for_ the positions amongst workers.
The fundamental rule to keep in mind is that if workers are being underpayed, they would simply change their line of work, driving wages up as the of supply of labor thinned. But what we see is that on the low-ends of both markets, wages generally stick to the minimum wage.
If tips were suddenly outlawed, do you think that restaurant wages would skyrocket to $30/hr? That's roughly the equivalent of 4 $40 tables with an 18% tip. I don't think so, because workers from other sectors would flood in from other sectors causing the wage to be pushed back down. A new equilibrium would probably be found somewhere just above the going rate in non-tipped sectors. If anything, tipping probably lowers wages for non-tipped employees more than the tipped ones.
I think the more interesting experiment would be to see how take home pay would be affected in a "tip-only" restaurant. In most, places around the country, the minimum wage for tipped positions is ~$6/hr. Losing that would be like losing one ~$33 table. On the employer's side, they would gain ~$9 back when you account for payroll taxes. I think what we'd see is that most of that wouldn't just be pocketed by the employer, it would probably go back into the restaurant in the form of better ingredients, materials, marketing, and/or additional staff, all in hopes of increasing the number of tables turned overall. Non-luxury restaurant profits are driven by tables turned, not the price of each plate. E.G. hiring an extra busboy or dishwasher might help you turn over more tables more quickly, increasing restaurant profits and also the number of tips earned by the servers.
I don't know, this is all an interesting thought experiment.
In general, I'm pretty wary of "employers pay workers less by taking advantage of X" arguments. Unless it's poor government policy distorting the labor market or something like a recession, labor markets probably function like any other market. Supply and demand still reigns king. Underpaying employers will have a hard time keeping employees. Highly skilled workers in any sector will sell their talent to the highest bidder.
The thing that makes me so sad about it, is that the waiters are the first ones to guilt-trip the customers, but never the employers. It really hits a nerve when I read those blog posts from ex-waiters, explaining how difficult it is to "live with a waiter wage, so please make sure you tip 25% at least". That attitude is exactly the reason why employers continue to take advantage of employees.
I agree that in the current state of things, tips are needed for waiters to survive. But it doesn't make any sense economically. If mandatory minimum wage was set for waiters, and tips were built-in, everyone would be better off.
Now, tips are not supposed to avoid taxation but it works out that way...
I've been using Lyft more and more lately. Drivers just seem.... better. And I don't mind tipping in the app.
If you pick me up promptly, follow your GPS, have a car that is functional, and either engage me in pleasant conversation or say nothing at all besides 'hello', I will give you five stars. Many drivers seem to act as if they are driving their friends around as opposed to driving their clients around.
That in itself is possibly a contributing problem. Incentives go all wonky when four-star ratings essentially don't exist. Five-star ratings should be reserved for exceptional service, and three-star ratings should be for average service, not "I'm unhappy with this but not enough that I won't feel bad giving a negative review, so I'll give it three stars." People don't know how to rate, and it makes all our rating systems much less accurate.
Personally I don't care if there is no incentive to go above and beyond the base level of service. All I want and expect is the base level of service. If you want to reward epic service, do so with off the books tipping.
This is the exact problem. A base level of service should be three stars, but people have been conditioned to read five stars as base level, and anything below as problematic. The whole point of a rating system is to get an idea of what to expect. When different people rate on different metrics, the data doesn't actually represent what you think it does (whichever metric you subscribe to).
The only reason anything less than five stars is interpreted weirdly is because people started rating weirdly and then start taking that into consideration when looking at the ratings, and it gets all confused. Many of these ratings systems clearly state what each rating level means, and people still don't rate by those criteria. People have been culturally indoctrinated to rate things incorrectly (that is, they specifically don't follow the instructions in lieu of following what has become the norm). This compresses one end of the spectrum which leads to loss of fidelity on that end. It's clearly worse than a system where people actually followed the criteria and we could actually identify a five star average as exceptional, a four star as good, and a three star as sufficient.
Then again, everyone wants that "I ordered 4.9 star out of 5 item on Amazon" reassurance...
When I go to a restaurant, pick up the order, I rate the restaurant either thumbs up (all went well) or thumbs down (something wrong, with option to choose what). They also rate me. I drop off, same thing happens. I rate them up or down, they do too.
Maybe they're just confused by everyone calling it "ride sharing."
I have known several drivers who sold marijuana, small individual shot bottles, smoking papers, flavored cigar papers, and other 'party related favors' out of their cars to make their Uber driving more profitable. Without this source of income made from people going to/from parties and bars on weekends, alongside their actual ride fares, their profit margin is not even worth the time.
These 'tipping' hustles are frankly extremely mild in comparison to my experiences. I'm of the opinion that these hustles are publicly frowned upon, but in practice are not effectively policed on purpose. If Uber policed these sorts of practices in an effective way(like if they had cameras/monitors in cars) they would lose a substantial portion of their drivers instantly.
Although I have also experienced this several times in the upper Midwest. I suspect there might be some bias in my physical appearance that makes me get offered more? Several drivers had a sort of setup where they had goods in a box/console and opened it to make the offer, so it seems likely that if they didn't feel a fare to be the partying type they would simply not make the offer? One I saw had an entire cooler setup.
Another possible explanation could be that in very competitive areas like LA or the Bay the rank/yank system cuts out bad drivers more quickly than middle-america where there is maybe not as large of a pool of people applying to be drivers?
I have never had a bad or sketchy ride in Bay/NYC/Chicago/Dallas. (I have had no experience with Uber in LA)
We're not bright, as a species.
The people under paying labor would probably disagree with you.
http://www.economist.com/blogs/gulliver/2015/10/service-comp...
But even more to your point... https://www.bna.com/no-tipping-fewer-b57982065202/
Unfortunately US politics means this won't change any time soon. Evidently it's simpler for every American to carry around spare dollar bills every day than it is to pass meaningful legislation.
One practical solution would be to close the minimum wage loophole for tipped employees. The difference between the two minima is the presumptive value of the normal tip, so this is a means by which you can coordinate an instant and universal change from relying on tips to having no reliance on tips. It's not exactly ideal, given that everyone knows waiters typically make a lot more in tips and evaded tax than that difference, but it is at least consistent and nominally fair.
I am not sure what other practical solutions you might have in mind.
I always find these sorts of arguments vexing - people act as if we can just 'decide' as a society to change something, and it is that simple. I can't 'decide' for society to do anything, unless we organize, coerce, and perhaps legislate.
"What is a tip? It’s a multiplier of menu pricing and as menu prices have gone up, so too has the multiplier over the course of my career which is now 30, 31 years.Tipped employees, happily for them, are making about 300 percent of what they were 31 years ago. During that same period, everyone in the kitchen — the dishwasher, non-tip eligible employees — have seen their hourly income go up about 20 percent."[1]
http://www.eater.com/2017/1/12/14250128/danny-meyer-tipping-...
There's been an interesting move by Danny Meyer and Tom Colochio two well-known and very successful restaurateurs in New York City to abolish tips in favor of a flat service charge to be shared amongst everyone in the restaurant.
Danny Meyer talks about the history of tipping in the US in which he claims is rooted in post-Civil War racism and the old Pullman cars.
http://www.businessinsider.com/tipping-is-a-hoax-born-out-of...
Here is a link to the podcast:
http://www.sporkful.com/the-restaurateur-who-got-rid-of-tipp...
Interestingly enough the practice seems to have originated in Europe however before dying out:
https://www.fordfoundation.org/ideas/equals-change-blog/post...
My guess is that it is more transparent to both the customer and the staff who may view this development with some suspicion at first.
1. Many drivers think they make less if the passengers are using Uber pool. I am not sure if this is true or if they are confused. However, when they find out I am using pool they instantly turn passive aggressive and start complaining how they make nothing on a pool ride. They make me feel as if I am taking advantage of them.
2. Uber also tries to pack the car these days. A lot of times, it is probably much faster taking public transit than using pool. One time, my pool ride was just going around picking up people and 15 minutes later I was exactly a block from where I started. I got off the ride and Uber has the balls to charged me $10 for "cancelling". Decided to quit Uber on that very day. Will only ride public transit or Lyft these days
Low income? Pay workers more. No one thinks it's a good idea to start tipping, say, teachers.
Can't afford higher salary? Split X% of profits among (smaller) staff. No one sells furniture for 10% less, halving cashier salary and making tips a requirement.
Suffering of preferential treatment of tippers (like giving out seats for money)? Fine or fire offending personnel. Why what effectively a bribe considered okay in these cases?
But no, somehow US culture still decides it's better to move that pressure and responsibility onto the customer provoking conflicts.
I were in US a couple years ago and found it pretty emberrasing how people are expecting a tip. I understand that they're paid less and i've spoken with some of them and waitresses etc may make about $3/h+tip. It's not the customers job to see to it that the employees stay at their job - it's the companies. At the hotel bar we had some kind of happy hour where everything was free which of course made it a bit crowded so unless you held up a tip / bribe the bartender just ignored you.
I understand that there are cultural differences but in my opinion you get a tip for a job well done - but it's ALWAYS optional and you should never feel obligated to give one.
Tips are often a major source of compensation
for wait staff and other U.S. service providers.
Employers often pay these employees lower wages
in anticipation that tip income will provide a
significant portion of the employees' income.
Customers should realize that they are not
auotmatically paying 'more' (due to tipping).
In non-tipping countries, the tips are simply
built into the price of the food. An advantage
to tipping, therefore, is the ability to tip
whatever is appropriate: if the service is
poor, a small tip should be left, signaling
to the server that their service was subpar.
https://www.tripadvisor.com/Travel-g191-s606/United-States:T...Younger waiters however seems not to know about this general tip that is baked into the bill and expect another tip on top of that. Watching too many movies from USA I guess :-)
Wherever it's accepted by society, I also generally tip.
I don't tip anyone and tipping is not a common practice where I live. In fact, most people would feel insulted if you gave them a tip here.
You're going to end up paying for it either way. But yes, I agree - I'd rather get rid of the culture of tipping and just pay a reasonable price for a service.
The thing that really sucks though, is per federal law an employer paying the 'tipping minimum wage' is required to make up the difference if an employee makes below the normal minimum wage - they almost never do from what I can tell. By choosing to not tip not only am I just being an asshole, but the employer won't change anything either because the chance of them being caught being a douchebag is slim.
The guy/girl says "i'm gonna be your waiter tonight", and that's the last time you see them, others bring the dishes and clean the table. And by law, they cannot share the tip.
When I pay for service, I'd like the employer and the market to figure out for me what's a fair wage. Don't put it on me, 1) I'll most likely be wrong and unfair, and 2) I just cannot tip the cook.
The cooks all made more money. Front of house people made like $2.25/hr (mid 90s), the line cooks made $12.
That's absolutely not true.
Looks like the front of the house can pool their tips in many states in the USA indeed. But according to Nolo, they cannot pool with people who typically get no tips.
"Only employees who regularly receive tips can be part of the pool. Employees can't be required to share their tips with employees who don't usually receive their own tips, like dishwashers or cooks."
http://www.nolo.com/legal-encyclopedia/tip-pooling-credits-s...
A bunch of others expand with a communal tip jar, but it's very rare for anyone to care about putting something in the jar. You don't tip cafe workers, convenience store workers, retail workers and so on even though they get paid the same minimum wage.
If you pretend to care about me and my company while we eat at your restaurant (or whatever) and do all that you can to make the experience a good one for us, then we will tip you well and we will more than likely come back. 20% is usually my minimum, but I've tipped 50-100% sometimes.
Treat us like shit, and you'll get tipped equivalently. (I've tipped 5% before for really crappy service. I don't like doing that, though.)
I think the bar for someone to not get paid for working should be really fucking high.
Some people who are pro-tipping are that way because they think the people are worth it. Maybe they have worked in a position that relied on tips. Maybe someone close to them did or does. Maybe they know that a dollar or two actually makes a difference for many people.
[1] http://www.ridesharingdriver.com/low-uber-driver-ratings-a-c...
Then some assholes sued and now Uber drivers are allowed to ask for tips. Nice job breaking it, hero.
Removing the on-the-spot pressure of tipping and the immediate human response makes it feel like a very different experience. It makes me feel truly generous when I do tip, but I also know that my personal rating does not depend on that decision in any way.
I used to rarely use Uber (more outside bay area) though I did have Uber installed on my phone. But I uninstalled Uber a few weeks ago as I was feeling more and more uncomfortable with Uber's corporate behavior and their CEO's personal and political reputation. This was even before the latest spate of allegations of sexual harassment and other bad publicity. I don't think I'll ever install Uber app again... the tipping policy being just one of the many reasons for that decision.
http://jayporter.com/dispatches/observations-from-a-tipless-...
Don't pay much mind, it's the HN hive mind trying to rationalize sympathy for underpaid drivers against the libertarian-ish notion that everyone is in a job like a full stack software engineer who can just walk off the job at will.
Would you be OK to have a shitty salary but the possibility to get a tip, for which you don't know the criteria and cannot participate in the negotiation?
the only country i've visited that has tipping is the us. outside the us, people get paid fair salaries and tipping is done when the service is outstanding.
err, tipping isn't mandatory. "The assholes" you are talking about are not employed by Uber therefore should be allowed to ask for tips if they want. Remember, Uber "is just an app", or so they say... "The assholes" want to make hands meet, just like you. You might not care about their point of view or their interests but nobody's going to be driving you at loss or with ridiculous margins for much longer. So there is no need to insult people who fight for their rights.
Rich and powerful people use the law to their advantage all the time when they don't blatantly violate it like Uber. I didn't see you complain about that, nor call them "assholes".
And why was Uber's practice unlawful? The "free market" of contractors Uber relies on to drive down costs also allows drivers freedom of speech to ask for tips. Uber can either have an open driver market or they can limit their drivers' speech — they can't do both.
At my local farmer's market vendors are neither contractors nor employees. Vendors rent space and enter into a normal commercial contract, the rules for which are very different.
"it's a bit silly to hold the position that Uber can't regulate the service in any way"
I'm sorry I'm having trouble seeing your argument here through the huge straw man.
(When I do tip on Uber, it is either going to the airport overseas to get rid of spare cash, or if something exceprional happened. I've taken UberX in major snowstorms and in that case happily tip $20. I left a laptop in an Uber and got it returned to me within 5 minutes, I tipped $50.)
I find tipping awkward as the courier. Sometimes people like to explain they don't have cash to tip me and I have to explain tipping isn't expected on Uber's platform so don't worry about it. Other times there shoving $5 bills at me for driving 1.0mi down the street.
As a customer I've yet to tip a Uber driver as other stated I don't carry cash only plastic. Same goes with getting my car detailed ... Do I give them $20 on top of the $100 or leave it at $100.
Then I think how many drivers actually report the tips they make to the IRS.
When I use Uber the first question it asks is the destination. I assume this is seen by the driver, no? Why would they have to call?
Different markets I suppose. It's also pretty easy to drive considerable distances around here.
There are a lot of sunken costs involved in becoming an Uber driver. The driver then has to recover those costs with miserable earnings. I suspect the burn rate of Uber drivers is unsustainably high.
Uber's inconsistent and awkward tipping scheme is a big reason I don't use them.
The "self employed contractors" who pick you up may have tipping schemes inconsistent with one another, though.
The whole thing seems to illustrate just how far out of whack tipping expectations are in the US compared to the rest of the world.
Uber rides are very cheap at the moment, especially when you get an Uber Pool and no one joins. I hope they up the fares some and pass them on to drivers and keep tipping for special extra-ordinary service. Uber is so much more convenient than conventional taxi service and I sure hope it or some similar service continues into the future.
He then proceeded to tell us with great glee that his trick was to go offline in-between trips until the surge price hit at least a 5-6x multiplier. He would then go back online and pick a fare that suited him. It explained why all of the Ubers and Lyfts there were insanely expensive.
I've never seen anyone so happy to tell me to my face that he was ripping me off, and he even had the cheek to ask for a 5* rating at the end of the trip.
Everyone has a side hustle to their side hustle now and it's generally concerning as an indicator of the economy.
I like not having to tip, too, but it's like the Prisoner's Dilemma: once somebody starts successfully collecting tips, everybody else feels pressure to ask for them and then the whole economy adjusts to accommodate them. That's how I think we got where we are.
The tip jar is always filled with silver change, almost always a "round up" from a note. If I buy a coffee for $4.20, and pay in cash, the tip jar might get my 80c. (I almost never carry cash, so this is rare in and of itself.)
The only time I've ever even seen a tip requested is as a part of some POS card readers, where it asks if you would like to leave a tip before you enter your PIN -- Conversely I've also had employees tell me "just hit enter to skip the tip bit of the transaction" before I've even gotten to that stage.
Nah.
I'm not saying I prefer these systems as a consumer; I would much rather pay a fixed price. I'm saying that it seems like they create the most profit and thus competitive edge for the businesses using them.
I know what the responses will be already. "The lack of tipping is one of the main reasons I use Uber! Tipping is awkward! They should pay their drivers more it's not my job". So then don't tip. That's really all there is to it.
[0] http://scholarship.sha.cornell.edu/cgi/viewcontent.cgi?artic...
[1] https://onlabor.org/2015/11/23/guest-post-tipping-as-employm...
We're all just sharing, right?
If you don't want to get hassled, better pay is the byline, not a tacked-on after-thought.
(Disclaimer: I found the tone of this post pretty insufferable.)
I really, really hope they nip this in the bud.
I'm amazed so many people still use Uber, not even because of the rotten company culture and business practices, but because of the user experience.
Add 10 cents to every ride and divide that money amongst the drivers in the city each day based upon 1) number of rides 2) rating 3) number of canceled trips 4) distance. It will incentivize the drivers to get good ratings (more so than now) and encourage less canceled trips and more fares.
I actually did once get a text from a guy demanding to know my destination. I told him I already entered it into the system, and he immediately cancelled on me.
I thought the whole point of Uber is to make the transaction cashless?
" Drivers sued because Uber was treating us like employees. Uber used to deactivate drivers who mentioned tips. The judge said Uber Drivers are independent contractors and have the right to request tips."
Lyft includes tipping in the UI, after the ride. As a result, their drivers don't have as much of a reason to hustle for tips.
Would you pay $10 for an oranage if you're buying it right from the farm? Of course not. The supply is such and the demand is such that $10 isn't the price.
Would you pay $10 for an orange in you're at Everest Base Camp? Probably because there aren't many orange trees up there.
The whole "living wage" argument doesn't hold much water with me. If Uber drivers were scarce, then Uber would raise prices (such as surge pricing.) If you aren't making enough driving Uber, then take your car, start your own car service, start marketing and compete.
Not that it's relevant but I don't particularly like Uber however I do like the free market. In this case it isn't like Uber is a monopoly.
One driver I spoke to said they used to have that, but Uber just kept the tips and didn't pay them to the driver...
This is very rude to ask for them, so I act proactively.
I hate this american business method of shifting blame to the customer.
Well, guess what that means.
https://www.jwz.org/blog/2017/03/a-round-up-on-why-uber-is-a...
Instead of giving the tipping option Uber should just automatically add 15%. But knowing Uber they would just keepo this 15% and not pass it on to the driver.