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Uber's Changed Its Policy: Will You Be Tipping Your Driver?

May 19, 2016
4 min read
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Uber's Changed Its Policy: Will You Be Tipping Your Driver?
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One of the things that makes Uber such an attractive option for travelers is its hassle-free, no-cash-necessary simplicity. (If you don't already have an Uber account, you can sign up now to receive a free ride [up to $20] from TPG.) When you hail an Uber, you know that it'll arrive to pick you up, you'll get in the car and arrive safely at your destination where you'll proceed to get out of the car without any physical transaction between driver and rider. There's no need to rummage through your wallet, get a credit card to pay or hand over cash to tip the driver. However, the latter isn't quite as straightforward as it once was.

Recently, the ridesharing service has changed its policy in two states — California and Massachusetts — to allow drivers to solicit tips from riders. Whereas the company didn't previously allow its drivers to ask for tips, drivers can now post signs in their cars that say tips are appreciated. This change comes as the result of a lawsuit in the two states in which the lawyer representing Uber drivers argued that they should be classified as employees rather than independent contractors. Last month, Uber and the drivers reached a settlement, and Uber conceded that drivers could put small signs in their cars that "tips are not included, they are not required, but they would be appreciated."

So, what does this mean for riders? Other ridesharing services like Lyft allow riders to tip their driver through the app, making it easy to complete the transaction without rummaging for cash upon arriving at their destination. Uber has made it clear that it doesn't intend on integrating an in-app tipping feature, and riders will instead have to tip with cash, eliminating one of the most appealing Uber features — its seamless, cash-free service. Uber has maintained its stance that tipping is not required, but drivers are allowed to accept tips if offered.

money wallet
You may soon be asked to tip your Uber driver.

But with the recent changes, it begs the question of if you should tip every time you ride. As everyone knows, ratings are a key component of the platform — riders and drivers rate each other following every ride. The higher your rating as a rider, the more likely you are to be picked up. So, if a rider doesn't tip with the new policies, will that result in a lower rating? Because the driver doesn't rate the rider until after the ride is complete and the passenger has left the car, the driver will know if they did or did not get a tip — ultimately impacting the rating they give the passenger. Other ridesharing services like Lyft with an in-app tipping feature require the driver to rate the passenger before finding out if they tipped, so a passenger's rating will not be impacted by their decision to tip or not to tip.

I've used Uber more than 10 times in the past week in San Francisco and New York and not once did I come across any signs soliciting tips. Perhaps this was just because of the drivers I was riding with, but I never felt pressured to tip. My usual approach to the situation is that if the driver went above and beyond to make my ride outstanding, I'll generally tip a few dollars — if I have cash on me, that is.

How do you feel about tipping your Uber driver? Will you think twice about using Uber if you feel pressured to tip your driver?

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H/T: New York Times

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  • Some may have trouble using Uber and other dining credits
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  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.
Apply for American Express® Gold Card
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Best for dining at restaurants
TPG Editor‘s Rating
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Rewards Rate

4XEarn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
4XEarn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
3XEarn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
2XEarn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
1XEarn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • Intro Offer

    As High As 100,000 points. Find Out Your Offer.
  • Annual Fee

    $325
  • Recommended Credit

    Excellent to Good

Why We Chose It

There’s a lot to love about the Amex Gold. It’s a fan favorite thanks to its fantastic bonus-earning rates at restaurants worldwide and at U.S. supermarkets. If you’re hitting the skies soon, you’ll also earn bonus Membership Rewards points on travel. Paired with up to $120 in Uber Cash annually (for U.S. Uber rides or Uber Eats orders, card must be added to Uber app and you can redeem with any Amex card), up to $120 in annual dining statement credits to be used with eligible partners, an up to $84 Dunkin’ credit each year at U.S. Dunkin Donuts and an up to $100 Resy credit annually, there’s no reason that foodies shouldn’t add the Amex Gold to their wallet. These benefits alone are worth more than $400, which offsets the $325 annual fee on the Amex Gold card. Enrollment is required for select benefits. (Partner offer)

Pros

  • 4 points per dollar spent on dining at restaurants worldwide and U.S. supermarkets (on the first $50,000 in purchases per calendar year; then 1 point per dollar spent thereafter and $25,000 in purchases per calendar year; then 1 point per dollar spent thereafter, respectively)
  • 3 points per dollar spent on flights booked directly with the airline or with amextravel.com
  • Packed with credits foodies will enjoy
  • Solid welcome bonus

Cons

  • Not as useful for those living outside the U.S.
  • Some may have trouble using Uber and other dining credits
  • You may be eligible for as high as 100,000 Membership Rewards® Points after you spend $6,000 in eligible purchases on your new Card in your first 6 months of Card Membership. Welcome offers vary and you may not be eligible for an offer. Apply to know if you’re approved and find out your exact welcome offer amount – all with no credit score impact. If you’re approved and choose to accept the Card, your score may be impacted.
  • Earn 4X Membership Rewards® points per dollar spent on purchases at restaurants worldwide, on up to $50,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 4X Membership Rewards® points per dollar spent at US supermarkets, on up to $25,000 in purchases per calendar year, then 1X points for the rest of the year.
  • Earn 3X Membership Rewards® points per dollar spent on flights booked directly with airlines or on AmexTravel.com.
  • Earn 2X Membership Rewards® points per dollar spent on prepaid hotels and other eligible purchases booked on AmexTravel.com.
  • Earn 1X Membership Rewards® point per dollar spent on all other eligible purchases.
  • $120 Uber Cash on Gold: Add your Gold Card to your Uber account and get $10 in Uber Cash each month to use on orders and rides in the U.S. when you select an American Express Card for your transaction. That’s up to $120 Uber Cash annually. Plus, after using your Uber Cash, use your Card to earn 4X Membership Rewards® points for Uber Eats purchases made with restaurants or U.S. supermarkets. Point caps and terms apply.
  • $84 Dunkin' Credit: With the $84 Dunkin' Credit, you can earn up to $7 in monthly statement credits after you enroll and pay with the American Express® Gold Card at U.S. Dunkin' locations. Enrollment is required to receive this benefit.
  • $100 Resy Credit: Get up to $100 in statement credits each calendar year after you pay with the American Express® Gold Card to dine at U.S. Resy restaurants or make other eligible Resy purchases. That's up to $50 in statement credits semi-annually. Enrollment required.
  • $120 Dining Credit: Satisfy your cravings, sweet or savory, with the $120 Dining Credit. Earn up to $10 in statement credits monthly when you pay with the American Express® Gold Card at Grubhub, The Cheesecake Factory, Goldbelly, Wine.com, and Five Guys. Enrollment required.
  • Explore over 1,000 upscale hotels worldwide with The Hotel Collection and receive a $100 credit towards eligible charges* with every booking of two nights or more through AmexTravel.com. *Eligible charges vary by property.
  • No Foreign Transaction Fees.
  • Annual Fee is $325.
  • Terms Apply.