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Uber’s tipping policy is janky, also potentially illegal

(BUSINESS) The tipping policy that Uber has in place is not much of a policy, nor is it 100% legal everywhere.

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Tipping your Uber

Uber has an interesting policy on tipping, On the Uber website, in the Help section, this is what Uber tells passengers:

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“As independent contractors, drivers may request tips at their discretion.”

The current pseudo-policy

Drivers care about rider ratings and do their best to create an ideal trip experience.

While Uber does not require riders to offer drivers a cash tip, you are welcome to do so.

Should you choose to tip, your driver is welcome to accept or decline.

Tipping is illegal in some places

Uber’s app has no place to add a tip for the driver, unlike Lyft, which does allow tipping through the app.

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Uber drivers still hope for tips, but Uber’s policy of allowing cash tips might be illegal in some of the states and cities where Uber operates.

Michigan and Pennsylvania are just two of the 13 states which ban cash payments for ride-hailing services.

Paper monies

New York and Texas states are both considering legislation that would ban cash payments to drivers.

Some states simply ban drivers from accepting cash while others ban drivers from soliciting cash payments.

Uber has not updated its website to reflect the different laws in different states where it does operate.

Do you tip Uber?

Proponents of tipping say that Uber serves in the role of a taxi, although it is a private vehicle.

It is nice to tip your Uber driver the same 15 to 20 percent you would tip a taxi driver.

At the very least, you should leave a 5-star rating, unless something was really wrong with the ride.

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The point of tension

Critics of tipping your Uber driver worry about whether Uber driver will serve lower-income areas, hoping to go into wealthier neighborhoods where they are assured of bigger tips.

Then there is concern about passenger ratings. Uber drivers would know if a passenger tipped or not before leaving a rating. Is it fair to rate passengers on the amount of a tip or not?

Uber drivers want the app to allow tipping, but Uber wants to keep things, “hassle-free.”

#TippingTension

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Dawn Brotherton is a Sr. Staff Writer at The American Genius with an MFA in Creative Writing from the University of Central Oklahoma. She is an experienced business writer with over 10 years of experience in SEO and content creation. Since 2017, she has earned $60K+ in grant writing for a local community center, which assists disadvantaged adults in the area.

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  1. Pingback: Uber is set to release their first diversity report and people can't wait - The American Genius

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