Ubers new Tipping Feature Explained

(Bick Bhangoo) #1

After quite a long time and much consternation of the drivers, Uber finally included a tipping function in their app. While this additional feature is a blessing, it has to be managed correctly, so we explain the Uber tipping feature in detail. This is part of Uber's 180 days changed program and was a long time in coming.

Tipping Feature

Both drivers and passengers must update their Uber app to apply the new features. This means downloading the latest version. In fact, drivers and passengers should make it an automatic action in their app feature setup.

The driver also has to enable tipping in the app after the upgrade has been installed.

An updated passenger app will show a rating request and the explanation for the rating(if it is under five stars), this is now a mandatory upgrade. However, since tips come after the rating process it requires all passengers to input a rating, and around 50% of passengers don't rate rides. This means that around 50% of all trips won't be tipped. I guess the logic behind this is to get the driver to educate the passenger on ratings in order to get them to tip. By increasing the ratings and hopefully reach 90%, will vastly improve the accuracy of driver ratings, or it will merely teach drivers to explain to riders that tipping is easily reached after choosing a 5-star rating.

Once the customer has passed the rating screen they will arrive at the tipping screen, it will ask for a compliment (not mandatory) and will also offer three tip choices. The tip choices are pre-set by Uber, in other words, while there is a custom tip option, it is limited to the total fare amount. So there is no free choice for tipping, which is also an issue since some customers might have just won the state lottery and want to tip an outrageous amount. No matter, the tip rates vary per city and also are ride fare based. There is always a "no tip" amount and two tip amounts.

Pool Tipping

One interesting feature for pool driving is that now all pool passengers have a separate tipping app feature, which means that now pool passengers won't gang up to make a cash tip together. Every passenger will be able to tip the driver separately after making a rating. This will add an incentive to the driver's amiability in accepting pool rides. It also means that pool drivers, who recently received an upgrade in their rates as well, can increase pool ride income substantially. It's just a matter of adjusting how they cope with pool rides and make them a preferred ride type.

No Tip Amount?

I don't; know why there is a $0 or No Tip option, maybe it's a psychological tool since most passengers rating drivers above four always consider the drive to be good even if they have to be educated about the rating. In that instance, they would feel bad about leaving no tip, so the psychology works, they will have to leave a tip because I would clash with their internal ethics. Mind you, remember that a customer has to pass the rating screen before they tip, so, their internal ethics are already in operation, and they will most probably tip in any event unless they rated due to a bad experience.

Viewing Tips

Viewing tips can only be seen after the fare has been paid and rated, by both the passenger and the driver. This means that the driver has to rate the passenger as well. About 30 minutes later the driver may view the trip log (details) in the Fare Details of the trip, and will see the tip amount. Remember, tips are taxable too.

Suggestions for Improvement

After viewing the app and using it a few times, the following suggestions were reached:

  1. Maybe Uber should add a % option, enable riders the ability to pay a minimum 10% tip, which will base the tip on the fare. This is a standard calculation everyone makes and will most probably placate most if not all drivers. By allowing the rider to set a % limit, but no less than 10% will assure the driver of an assured trip addition.
    This option or addition has a downside; Uber offers riders, its obvious that a $1 tip on a $4 ride is 25%, so there are also negatives to adding a percentage option when discussing small trip fares.

  2. Remove custom tip limitations and allow a rider to input any amount they want to tip. I don't think that they will tip enough to make the driver retire, but it can help with some of the more lucrative tipping fares.

Final words

Tipping is available in all of Canada and the US. Passengers can still give cash tips to drivers and forgo the use of the app. Sometimes, when taking many passengers, such as in a family trip or picking up passengers from a restaurant or bar. One of the passengers will tip in cash even though they aren't the customer that ordered the ride. Tips are available in instant pay cash since they are now part of the income statement.

Remember, both driver and passenger must update their apps to make the tipping feature available. After downloading the update, the driver has to enable the feature in this app before the passenger can use it in their app.

Uber's 180 days changes have introduced many new features, and this one was a long time in coming. Most drivers now have a tip box in their cars; I suggest they don't remove the box since cash tips are always welcome.

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