Driver tips to change for Uber

Published Apr 18, 2017

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Washington -  The city's Taxi and Limousine Commission is weighing a

proposal that would require all for-hire drivers to offer riders the option to

tip using the same method of payment they used for the ride.

In Uber's case, that would mean adding a tipping option on

its mobile app where riders currently pay using a credit card. The change would

be a significant one for Uber, which has avoided past calls to add electronic

tipping.

New York City is the

company's largest US

market, making it painful to exit should Uber choose not to comply with the

potential policy change. It could also serve as a bellwether for other

regulators to pursue similar policies.

The New York Times reported the news earlier Monday. Once

the commission officially proposes the change, it must be certified by the

city's law department and subjected to public comment. After a public hearing,

the commission must vote to approve the measure.

Read also:  Cash payment system blamed for Uber taximan's death 

Uber spokesman said the company plans to review the proposal

when it is officially released in the coming months.

"Uber is always striving to offer the best earning

opportunity for drivers and we are constantly working to improve the driver

experience," the company said in a statement.

While Uber technically permits cash tips, its website

describes rides as a "cashless experience" and states that

"tipping is voluntary.”

"As a rider, you are not obligated to offer your driver

a gratuity in cash," the website states. "If you decide you would

like to tip, your driver is welcome to accept."

Uber's chief rival, Lyft, has offered the option to tip

drivers in its app since it was founded in 2012. Last month, Lyft touted that

its drivers have collected $200 million in tips in that time.

Uber drivers have pushed the company to add an electronic

tipping option, something it has declined to do thus far. In New York, a petition from the Independent

Drivers Guild contends that drivers are missing out on thousands of dollars

because there is no electronic tipping option. That petition has garnered more

than 11 000 signatures.

Uber executives pledged last month to improve relations with

drivers, who have complained that the company's tipping policy and declining

fares have impinged their earning potential.

Uber CEO Travis Kalanick, was filmed arguing with a driver

who claimed that the company has reduced the price of its service at the

expense of drivers.

Rachel Hunt, who runs marketing and operations in the United

States and Canada, told reporters last month that the company planned to give

drivers greater say in disputes with riders over cancelled trips and reports of

poor service.

WASHINGTON POST

 

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