Let’s clear up a few things about Uber tipping and do you tip Uber drivers?
By now, you are accustomed to getting around using ridesharing services.
Most are no longer wondering…what is an Uber driver?
The ease of using your smartphone to hail a ride as well as pay it is still a new idea, but it is already one that is difficult to picture living without.
These platforms make getting around quite easy.
What is better than getting a cab using your smartphone and getting to pay your fare using the phone?
Talk of a cashless society.
The convenience is just irreplaceable.
So do you tip your driver?
The world is becoming an increasingly tipping-friendly culture, so this question is quite welcome.
How do they look at tipping their drivers?
Is it acceptable?
Is it encouraged?
Here, let’s have a look.
UBER Tipping Policy
For starters, there is a new tipping policy for passengers.
As you would expect, with growth comes policy changes.
It was previously held that the fare rates were inclusive of gratuity and drivers were generally encouraged to turn down cash.
This was supported by the fact that tipping was not possible via the app because it was factored in the fare.
This was challenged by drivers.
They claimed that even though they earned $6 more than conventional taxi drivers, they were responsible for vehicle maintenance and gas, unlike the other taxi drivers.
Of course, the courts upheld the drivers’ case and awarded $100 million to drivers.
The settlement also included an immediate policy change.
They are required to notify drivers that gratuity is not included in the fare, and they are free to allow tipping.
Does UBER Include a Tip?
They don’t include a tip in their standard fare rates as many believe.
Their various services from UberX to UberBLACK do not have options to tip the driver within the app.
Your payment when you use this hybrid service does include a 20% gratuity.
You make your payment within the app and the extra goes to the driver.
But for regular rides?
Do you tip Uber drivers then?
Yes, you can.
People tip their rideshare drivers using cash.
This is allowed by their policy which states that clients do not have to feel committed to paying extra at their trip’s conclusion, but are able to if desired.
Drivers are to remind riders that tipping is not necessary.
The policy allows them to accept the tip if the rider insists.
This means that the passenger can give a tip to their driver if they so wish (it’s hard nowadays to withhold a tip and maintain a clear conscience).
UBER Driver Tips
It is important to realize that company commissions do not apply to the tips given.
The driver gets to keep the whole tip amount.
There is a 25% commission charged on the driver which goes to the parent company for their trouble of putting up the platform.
This commission is not charged on the tip.
It is quite hard to determine how much an Uber driver can make from tips because there are so many different ride types and price points.
All of these attract different classes of people with different tipping abilities.
UBER Tipping Etiquette
When it comes to tipping Uber, many people are confused.
There is a general issue with understanding how the ride payment process works.
The entire payment procedure takes place in the app.
Therefore, many people assume that a tip is already contained in the fare.
Others do not even know that they can tip the driver.
But no matter what, tipping Uber is OK.
This could make or break a driver’s revenue for the week.
They try to make riding with them a cashless and seamless experience, and they say there is no need to tip.
This has made many people not to tip their drivers.
However, if a client insists on tipping Uber, the driver is free to accept.
Drivers do a great service for their customers.
It is imperative to be kind and tip the guy who has made sure you have taken the shortest route possible by avoiding traffic.
The general rule is to always tip 15%-20% percent of the total fare charge incurred on the trip.
20% of $20, for instance, is about $4.
You are always welcome to be more generous.
Should You Tip UBER Drivers?
So, do you use rideshare often?
If the answer is yes, are you supposed to tip your Uber driver?
This is perhaps something that you have asked yourself before since living in the U.S. means living in a culture that is tip-friendly.
We tip our waiters, our baristas, our valets, our taxi drivers, and even our pizza guy.
So, why do some people not tip?
And if you do not, should you?
This post provides answers to all your gratuity dilemmas.
The thing is that people in the service industries – like drivers – rely on tips.
A tip can make or break their monthly income.
Tipping an Uber driver who on average earns about $14 – $19 per hour on a good day can make a huge difference in his salary.
How to Tip on UBER
Wondering how to tip?
You can offer it in cash.
Gratuity is a good thing as it increases the driver’s weekly income, which is helpful as many drivers depend on this gig as their main source of income.
Also, Uber tipping helps you to have a good rating as drivers are likely to rate you a 5-star.
Not tipping, on the other hand, affects the driver’s income and might make you have a lower rating.
According to USA Today, using Uber etiquette is just as important to the driver as it is to the passenger.
Rideshare is basically a cashless experience of course until you have to pay more at the end.
There are two different approaches to the experience.
There is the UberTAXI where you call a taxi from the app.
Here, you can factor in a 20% gratuity that automatically goes to the cab driver.
The other option is the standard services like UberX, etc., along with UberT which lets you call the cab and then pay the driver directly with cash.
Either way, passengers should choose to tip drivers in cash.
You have to remember that the earnings through the app have to be processed.
This may take a while before the tip finally gets to the driver.
UBER Tip Sign
Have you seen tipping signs behind headrests in drivers’ cars?
What’s that about?
These are the result of confusion about whether or not to tip Uber drivers.
A recent court ruling required a policy change to allow drivers to accept some cash.
These tip signs are a polite way to remind passengers that tips are allowed and appreciated.
Do You Tip UBER Drivers Q&A
How much does a driver make a week?
According to recent surveys, most drivers work about 10 hours a week.
This translates to about $ 200 – $ 300 a week.
Those working full-time clock anything in the range of $ 600 – $ 800 a week; others max out at $ 1000 a week or more.
New drivers get sign-up bonuses when they join the platform and promotional pay once they hit the road.
What about driver’s expenses?
They treat their drivers as 1099 independent contractors.
This means a driver is responsible for all their expenses including gas, car maintenance, and insurance.
Uber, however, offers its drivers a commercial insurance cover of up to $ 1 million dollars for losses that occur when the driver has a passenger on board.
Generally, vehicle maintenance is the only real and recurring expense once you have joined taking into account that there are no huge costs when joining.
Is it better working part-time or full-time?
This is a matter of choice.
I would, however, advise on working part-time.
This is because as a part-time driver, you are well able to ensure that you only target the most profitable hours and days.
These are the morning and evening commutes, Fridays and weekends.
All the other times are down times and you can do something else with those hours to earn extra income.
Working part time also ensures you are able to take advantage of surge pricing.
Any ride given during surge times is subject to surge multiplier because the demand for cabs surpasses the supply and therefore there is need to increase the driver pay out.
It is a simple law of demand and supply; decrease in supply triggers an increase in demand and vice-versa.