Premise
Uber, reeling from a plethora of PR nightmares and bad decisions, struck a positive tone today via an email to Uber members. Titled “An easy way to say thanks” Uber announced it will finally match Lyft in the tips department. While Lyft crested $250 Million in tips recently, Uber’s larger brand presence will help it catch up. Read on for more details, and a Uber rebate bonus!
Uber Tipping Details
Per the email, after a trip Uber customers can leave a tip for the driver or food delivery order (via UberEats) – and Uber does not charge its customary 20-25% commission on these tips, similar to Lyft.
This starts today, June 20th, but only in three select cities – Seattle, Minneapolis, and Houston – as a preliminary test before rolling it out in full United States by end of July.
In-app tipping is coming. From 5-star ratings to compliments, and soon with tipping, our app gives you many ways to say thanks. To ensure a smooth, uninterrupted experience, you can leave a tip after your trip (or order) at a time when it’s convenient for you. Tips go directly to drivers and our delivery partners; Uber takes zero service fees. A better tipping experience is just the beginning. Uber is committed to making meaningful changes that our customers have asked for.
Concept
Very similar to Lyft, after rating your driver or order, you can leave a predetermined amount ($1, $2, or $5) or create your own custom tip. This was Lyft’s initial plan, before their recent announcement of updated tips for rides above $25 ($2, $5, and $10).
On Uber, you have 30 days to leave a tip and can use your uber credits/gift cards. More FAQ available on the Uber website. Note that for UberEats, you only have 7 days after your delivery to leave a tip. Not sure why the time frames are different for each medium, but be sure to leave a tip (if you like) soon after they have completed.
Concerns
As a consumer, I am concerned this will lead to tip hunting, where drivers beg/berate passengers for not just a five-star review, but also tips. Any behavior of that sort should immediately be reported.
Bonus Rebate
Per slickdeals, you can get $1 rebate per Uber ride via Ibotta, with $5 bonus credit earned through the month of June. Sign up through my link or with my promo code rnoexaa for an extra $10 welcome bonus to start!
Conclusion
This looks to be a good roll-out and excellent boon in PR for Uber, which is facing its fair share of problems. By acquiescing to driver’s requests for in-app tipping, they may win over some hearts and minds. One interesting point to note is that some drivers may not opt to accept tips! Not sure why they wouldn’t – seems harmless enough – but could be seeking to avoid taxes with cash tips.
Additionally, some drivers may opt to not accept tips via the app. You can always tip your driver in cash if you would like.
For me, tips are for above and beyond – do an exceptional job and you will get a tip. This does make it easier for me, so I no longer have to carry cash. As a customer, that is greatly appreciated. I hope to experience this soon – as I take a car to work several times a week.
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