Uber debuts tip feature in U.S., Canada to follow
Published: June 26, 2017
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Industry News
Uber is introducing a new in-service tipping feature in the United States, and has suggested it will also be coming to Canada.
At the moment, all Uber transactions are taken care of electronically. This means customers have peace of mind that their fare is set before the journey, while drivers don’t have to worry about passengers running without paying.
Under the business model of the ride-sharing company, all fares received are split and the driver gets a percentage as payment. The subject of tips has been controversial and Uber has been clear there is no obligation to tip drivers. Indeed, some argue the fee is already covered so tips are not needed.
In the event where tips do happen, the passenger usually gives the driver a cash tip on the spot and at their discretion.
Now the company is debuting a tipping option in the United States, which will give every passenger that old conundrum of how much to tip. Currently, the feature is being live tested in Seattle Minneapolis, and Houston. It will likely spread through the U.S. in the coming months.
Uber Canada spokesperson Susie Heath says tipping will likely come to the app in Canada later in the year.
"Nearly every feature we are building and shipping over the next 180 days is being built for a global audience, and many — if not most — will be available internationally by the end of the year," wrote Heath in an email.
Last week, Uber CEO and founder Travis Kalanick announced he would step down from his position, but still retain a seat on the board. Kalanick has been involved in several controversies and at least four key investors were known to be demanding his resignation.