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.
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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