Helpful Tip: Uber Adds Gratuity Option

By: Allison Perrine June 22, 2017
Uber is adding a tipping option to placate drivers leaving the company for other rideshare services.
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After years of requesting a tipping option, Uber drivers are finally getting what they’ve wanted.  On June 20, the popular rideshare service released a tipping feature in three U.S. cities—Seattle, Minneapolis, and Houston—and vowed to enhance its system to further benefit drivers with additional features such as protection insurance and more.

The tipping feature is expected to be available everywhere by late July, and drivers will be notified once it launches in their areas. Riders can give custom tips or suggested amounts based on their experience, with a window of up to 30 days after the trip to add a tip if they so choose.

Uber has long debated the option; a key appeal for riders using the app has been the lack of pressure to tip. However, competitor Lyft has had a tip option since its conception, and its drivers have made nearly $200 million in tips since 2012. This, coupled with complaints by Uber drivers, has helped move the company’s tipping option forward.

Other features to be added include the option for drivers to register for injury protection insurance.

Drivers opting in will pay $.0375 cents for every mile a rider is in the car. To assists drivers in paying for it, Uber has hiked the fare $.06 for every mile a passenger rides in the 28 states it's available in.

Additionally, the company is reducing its minimum wait time for cancellation fees. Previously, drivers received the fee if a user canceled their ride more than 5 minutes after they initially requested it. Now the fee will kick in if they cancel more than 2 minutes after requesting the ride. This 2-minute window will also apply to wait periods, after which a per-minute rate will kick in.

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