Uber CEO Dara Khosrowshahi has addressed a key contentious issue within the gig economy: when customers should tip. For gig workers, such as those driving passengers to airports or delivering restaurant food, tips can significantly impact earnings, often distinguishing between trips with thin profit margins and those that are more profitable. Khosrowshahi's comments highlight the importance of tipping practices for these workers.
What Uber CEO said about tipping drivers and riders
In an interview on CBS Sunday Morning, Khosrowshahi said: “Tipping is entirely optional. But if you feel like you got a good ride, if the service quality was terrific, then you can tip through the app. You should only tip if you feel you got your money's worth and then some.”
Khosrowshahi also added that around 20% of Uber riders currently leave a tip, though "that's increasing." Studies have shown that customers are more likely to tip on food delivery orders than on ride-hailing services like Uber and Lyft.
According to a report released last year by data analytics firm Gridwise (seen by Business Insider), an estimated 90% of food delivery trips included a tip, compared to 28% for ride-hailing.
Khosrowshahi also shared his own experience with tipping culture while working undercover as a delivery driver for the platform. During that time, he encountered "tip baiting" — a situation where customers add a tip to attract a driver and then revoke it after the order is accepted.
Over the past few years, tipping options have become more common across different types of transactions. For instance, some point-of-sale systems now suggest tipping even for takeout.
Khosrowshahi said that in the US, ride-hailing passengers often feel a "pressure" and "expectation" to tip.
What Uber CEO said about tipping drivers and riders
In an interview on CBS Sunday Morning, Khosrowshahi said: “Tipping is entirely optional. But if you feel like you got a good ride, if the service quality was terrific, then you can tip through the app. You should only tip if you feel you got your money's worth and then some.”
Khosrowshahi also added that around 20% of Uber riders currently leave a tip, though "that's increasing." Studies have shown that customers are more likely to tip on food delivery orders than on ride-hailing services like Uber and Lyft.
According to a report released last year by data analytics firm Gridwise (seen by Business Insider), an estimated 90% of food delivery trips included a tip, compared to 28% for ride-hailing.
Khosrowshahi also shared his own experience with tipping culture while working undercover as a delivery driver for the platform. During that time, he encountered "tip baiting" — a situation where customers add a tip to attract a driver and then revoke it after the order is accepted.
Over the past few years, tipping options have become more common across different types of transactions. For instance, some point-of-sale systems now suggest tipping even for takeout.
Khosrowshahi said that in the US, ride-hailing passengers often feel a "pressure" and "expectation" to tip.
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