In what is one of the most fundamental changes ever made to Uber’s business model, the ride sharing app has begun to roll out an update that will allow users to tip drivers, reversing a policy it had in place from day one as potentially the biggest…
In what is one of the most fundamental changes ever made to Uber’s business model, the ride sharing app has begun to roll out an update that will allow users to tip drivers, reversing a policy it had in place from day one as potentially the biggest differentiating factor between it and standard taxicab services.
Indeed, Uber’s dominance in the on-demand transportation space was built almost entirely because of its cost effectiveness, with fares often less than half of what you might pay for a traditional taxi. Intentionally precluding the ability to tip your driver was an essential part of that value promise.
However, that’s not the only valuable thing Uber has to offer anymore. It’s the fact that in any major city in the country (or even the world) , you can have someone pick you up at any time of any day within a matter of minutes. It’s the fact that they have responsive customer service. It’s the fact that you can easily split fares, share your ride details with others, and request trips for other members of your family.
And, as Uber is now a dominating force in the transportation market for reasons other than being cheap (after all, Lyft and other services are now undercutting that benefit) , calls for the ability to tip in-app have magnified not only by drivers but also by riders.
Those calls have now been answered, as Uber has announced that effective immediately, riders in Houston, Minneapolis, and Seattle can now tip via their Uber app. The feature will be rolled out to the entire country over the next month.
Of course, there is also a darker undercurrent to today’s news, as Uber has been facing mountains of negative press recently, mostly related to its corporate operations where office and executive staff have been reeling with sexual harassment allegations and other negative workplace conditions.
On that note, other features are also rolling out in the app, such as the ability to pay additional money to drivers as a «waiting» fee if you aren’t quite ready when they arrive. It’s all part of what Uber is calling a 180-day stretch of new updates and options to help make conditions better for its massive network of self-employed drivers.
