Recall when Uber was a tip-less service? Indeed, part of what created Uber the undisputed pioneer in rideshare services was its no-tipping policy, as featured front and center on the organization’s website: “No money, no tip, no hassle … If you arrive in your destination, just hop out–we’ll automatically bill the credit card on file. And there is no need to trick.”
This verbiage is long gone from Uber’s website, also in July 2017 the firm began actively encouraging riders to trick drivers: “Great service deserves to be rewarded.”
Uber is using a combination of carrot and stick to promote cyclists to tip, yet to tip extravagantly.
In an interview with CNBC, Uber’s new CEO Dara Khosrowshahi admitted that there is a link between bicycle and tipping ratings. “I am a really competitive tipper at the moment. I select every time to the maximum tip. My evaluation is currently becoming better. I am not sure if it’s aggressive leaning. Everybody, tip aggressively.”
Why bother currying a rider score that is greater? Passengers with greater ratings are more likely to get drivers to begin with. And if that’s correct, the converse must be true as well riders get drivers that are lower-rated.
And that’s only the start. Khosrowshahi disclosed that the company is creating a package of perks offered only to higher-rated riders. No details yet.
Reward or extortion; carrot or stick. Uber has long had a reputation for dodgy business practices that are . However, the ease and value and convenience — anchored by its no-tipping coverage of the service–combined to make it the clear choice in comparison to unconventional taxi choices and conventional.
If Uber drivers are not adequately compensated from their share of published rates, the prices should be either raised by the corporation or increase drivers’ part of each fare. Riders for hints that are ever-higher is a step back to some compensation system that is not disrespectful of workers, although antiquated.
Reader Reality Check
How has your relationship with Uber evolved?