Published: Tue, April 18, 2017
Hi-Tech | By Merle Christensen

Uber might be forced to add a tipping option

Uber might be forced to add a tipping option

A new proposal is slated to be introduced by the city's Taxi and Limousine Commission that could soon require ride-sharing apps that only accept credit cards to provide passengers with the option of tipping via credit. "In the medallion taxi industry, the TLC is able to protect what part of the fare the driver is entitled to and specific rules about what additional costs can and cannot be deducted from the fare", the spokesperson said. Rather than create a tipping option in the app, Uber then told riders who wished to tip that they could do so in cash.

The consumer protection arm of the California Public Utility Commission found Uber Technologies has violated "zero-tolerance" rules governing drunken-driving complaints on 151 occasions over the course of a year, out of 154 complaints reviewed. He said he hopes the tipping option could spread to other cities or states through similar regulations if it takes hold in NY. If you want to tip your Uber driver, you'll need to have cash on hand. The Guild represents around 50,000 rideshare drivers in New York City.

Commuters are likely to face a hard time on Tuesday as a section of app-based taxi drivers has threatened to go on an one-day strike, even as autorickshaw drivers are planning to take out a protest march in front of the chief minister's residence. IDG is the only organized group of drivers that meets regularly with Uber management to advocate for drivers.

The TLC says a gratuity option on the ridesharing app would help protect the rights of Uber drivers, who complain about declining wages.

The IDG estimates tipping will be worth an extra $300m (£238m) to drivers in the city every year. The Delhi High Court, after hearing Uber's plea, passed an interim order restraining anyone, including two taxi drivers' unions, from "hampering" and interfering with the running of app-based cabs of Uber India. "Cuts to driver pay across the ride-hail industry has made tipping income more important than ever", said Conigliaro in a statement.

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The TLC rulemaking process is expected to take a few months.

"Uber is always striving to offer the best earning opportunity for drivers and we are constantly working to improve the driver experience", the spokeswoman said. New York City taxis and Lyft already offer tipping via credit card, but Uber does not.

Rival Lyft, which lets customers tip from its app, in March said its drivers earned more than $200 million in tips nationwide since it started the practice in 2012.

Uber assigns a cost for a booking fee, plus a per-mile cost and a per-minute cost that the driver makes for each ride.

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