Will you tip your Uber driver?

IN A bid to soothe disgruntled drivers, Uber is introducing a thoroughly un-Australian feature to its app. But will you use it?

IN A bid to soothe disgruntled drivers, Uber is introducing a thoroughly un-Australian feature to its app. But will you even use it?

Last week, the ride-sharing giant introduced its long-awaited tipping feature in the US, and the company says Australia should follow before the end of the year.

The move was part of Uber’s “180 days of change” initiative, in which the embattled company pledges to make “meaningful changes to the driving experience ... because it’s the right thing to do”.

Uber itself is currently embroiled in a smorgasbord of scandals, with one investor recently going so far as to describe it as a “Ponzi scheme” that has a “99 per cent chance” of collapsing within a decade.

Former Uber chief executive Travis Kalanick, who last month stepped down from his role following a damning report exposing the company’s toxic culture, was earlier this year recorded arguing with a driver who complained about falling fares.

Uber hailed the new feature as a success. “On Tuesday, July 18, we launched tipping across the country,” the company said in a blog post. “To thank you, our drivers, we matched every tip on every ride in the U.S.”

Passengers opted to fork out an extra $1.3 million on Tuesday, meaning drivers took home an extra $2.6 million. “Whether it’s a great song, conversation, or shortcut, you know how to make riders smile,” Uber said. “Thank you for going the extra mile.”

According to a survey by market research firm MFour Mobile Research, the 79 per cent of riders in the US said allowing tips was a “great idea” or a “good idea”, while just 13 per cent felt negatively about adding a tipping option.

Constance Hoffman, owner of US etiquette firm Social and Business Graces and author of Tips on Tipping, told MarketWatch passengers should offer a base tip of $US1 to $US2 per passenger for short rides, with additional tips added for things like traffic, road construction or other inconveniences, distance, and whether the driver helped with luggage.

“Tipping is never a requirement, but a good art to provide,” she said.

An Uber Australia spokesman said drivers rate the passenger “before they see the fare receipt”, meaning users shouldn’t worry about receiving a poor rating for not tipping. “Riders have up to seven days after the trip to add a tip and they can’t add one until they receive a rating card in the app, which happens after the trip is complete,” he said.

Sydney Uber driver Kate Doak welcomed the idea. “It will be interesting to see exactly how it rolls out, given the difference in tipping culture between both Australia and the US,” she said.

“It will all depend on the individual riders themselves. If they feel as if their driver deserves a tip they should have the opportunity to make it, but at the same time they shouldn’t feel compelled, either by the driver or Uber itself.”

But she raised concerns about how the tip feature would be integrated with the new requirement to collect GST. Uber is currently in the process of rolling out changes to its app in Australia, after losing a legal battle with the tax office in February.

“Uber is probably going to have to be very careful how they roll it out,” Ms Doak said. “If the tax office rule the tip as being GST-related, it could cause some significant issues again for both the drivers, riders and Uber itself.”

Melbourne Uber driver and YouTuber Darren Levy said it was easy to find negative comments online from some drivers unhappy with the amount they earn, but the truth was “Uber is not the best way to make money but it also isn’t the only way to make money”.

“There are ways to optimise driver earnings [such as by] logging on at certain times [and] driving in certain areas,” he said.

“Personally, I drive part time to make extra cash and think that, for what the service is and how it has innovated the taxi industry, when driving at the right times, one can earn an appropriate amount of money for the services offered. Tips are a nice bonus.”

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Originally published as Will you tip your Uber driver?