https://www.bostonglobe.com/busines...016/04/27/uber-resists-adding-tipping-its-app/BNEfLpo8dLcfC9czdcvtzI/story.html
Uber, facing a chorus of criticism from its drivers for refusing to add a tipping function to its app, is mustering a provocative argument:
Tipping is inherently unfair because of customers' unconscious racial biases.
class-action lawsuit by drivers who alleged unfair wage and labor practices. As part of the settlement, Uber has agreed to clarify that tips are not included in its fares - an important concession that drivers hope will prompt more passengers to add a gratuity.
But even though its smaller rival, Lyft, already offers a tip function, Uber has no plans to include one. A spokesman referred to a 2008 study by two Cornell University professors that analyzed data on tipping practices in restaurants and concluded "consumers of both races discriminate against black service providers by tipping them less than white service providers."
Uber also pointed to a 2014 Bloomberg analysis that uncovered puzzling variations in the tips paid to New York City taxi drivers. Among other statistical oddities, the research found that larger fares that ended in the digits 0 or 5, such as $40 or $55, earned cabbies far smaller tips, on average, than similar fares that happened to end in other digits.
The Uber spokesman, who declined to make a company official available for an interview, said introducing widespread tipping would make drivers' overall compensation dependent on those same racial biases and apparently random psychological effects. The net result, he said, would be a discriminatory system in which two drivers who perform the same work could receive substantially different wages - not because one provided superior service, but because one was black, or unluckily had fares ending in 5s and 0s.
there's no need to tip." Some drivers complained that creates a misperception that they do receive tips from the company, when in reality, they receive only the fare, minus the 20 to 25 percent cut that Uber takes.
A spokeswoman for Lyft, whose fares in Boston are slightly lower than Uber's, declined to answer questions about potential bias in its app-based tipping system. She said customers have given its drivers more than $85 million in tips over the years.
"Lyft has had tipping since the beginning," she said. "We wanted passengers to have a way to show their appreciation to drivers who go above and beyond to give a great ride or be extra helpful, since so many of them do."
While the Uber settlement allows drivers to solicit cash tips without fear of being removed from its the network, drivers worry that customers who are used to a seamless, cashless experience will balk if the ask is too aggressive.
Seaton said she's noticed both drivers and passengers are switching to Lyft. If Uber added the feature, she said, it would modestly boost her income and help Uber retain more experienced drivers.
"Everyone involved would be happy," she said.
Uber, facing a chorus of criticism from its drivers for refusing to add a tipping function to its app, is mustering a provocative argument:
Tipping is inherently unfair because of customers' unconscious racial biases.
class-action lawsuit by drivers who alleged unfair wage and labor practices. As part of the settlement, Uber has agreed to clarify that tips are not included in its fares - an important concession that drivers hope will prompt more passengers to add a gratuity.
But even though its smaller rival, Lyft, already offers a tip function, Uber has no plans to include one. A spokesman referred to a 2008 study by two Cornell University professors that analyzed data on tipping practices in restaurants and concluded "consumers of both races discriminate against black service providers by tipping them less than white service providers."
Uber also pointed to a 2014 Bloomberg analysis that uncovered puzzling variations in the tips paid to New York City taxi drivers. Among other statistical oddities, the research found that larger fares that ended in the digits 0 or 5, such as $40 or $55, earned cabbies far smaller tips, on average, than similar fares that happened to end in other digits.
The Uber spokesman, who declined to make a company official available for an interview, said introducing widespread tipping would make drivers' overall compensation dependent on those same racial biases and apparently random psychological effects. The net result, he said, would be a discriminatory system in which two drivers who perform the same work could receive substantially different wages - not because one provided superior service, but because one was black, or unluckily had fares ending in 5s and 0s.
there's no need to tip." Some drivers complained that creates a misperception that they do receive tips from the company, when in reality, they receive only the fare, minus the 20 to 25 percent cut that Uber takes.
A spokeswoman for Lyft, whose fares in Boston are slightly lower than Uber's, declined to answer questions about potential bias in its app-based tipping system. She said customers have given its drivers more than $85 million in tips over the years.
"Lyft has had tipping since the beginning," she said. "We wanted passengers to have a way to show their appreciation to drivers who go above and beyond to give a great ride or be extra helpful, since so many of them do."
While the Uber settlement allows drivers to solicit cash tips without fear of being removed from its the network, drivers worry that customers who are used to a seamless, cashless experience will balk if the ask is too aggressive.
Seaton said she's noticed both drivers and passengers are switching to Lyft. If Uber added the feature, she said, it would modestly boost her income and help Uber retain more experienced drivers.
"Everyone involved would be happy," she said.
