Agree with catamount that Uber's original proposition of a no-tip service and then pivot to tipping encouraged is initially confusing then generally annoying.
LyftWhat prompted the change?
Our company policy is we don't tip Uber drivers, and if we want to we can in cash. There was something about it blowing up our Concur system because they came through in multiple expenses.
One of the main points of Uber when it first came out was that tipping wasn't going to be a thing anymore, and that the drivers were payed well enough on a percentage of the ride. I like that. The US tipping culture is out of control and counter productive.
How is tipping "out of control"? At most you're tipping a couple times a week. And it's always given to those in need providing comforts like delivering me food or driving me around so I can spend $50 at a bar.
I’ve heard several #anecdotes about POS credit card tipping just going to the owner’s pocket for quick service type places as opposed to the staff. Is this common and is it legal?
We've had several discussions about this over the years. The big problem is that it's a scheme that allows owners not to pay workers a fair wage. In some cases, businesses take tips from workers. It encourages workers to give different levels of service to different customers based on expected tips. Etc etc etc. But we've gotten so used to tipping that some workers view potential of getting something extra as better than a system in which they get paid better off the top.
One issue with tipping for Uber/Lyft is some of the factors we account for with tipping are baked into the pricing already. Bad weather, bad traffic, distance away from the pickup. Things like that. The price can jump 10-20% if you wait 5 minutes to book it.
That $2 plus tips is ancient and has not been adjusted along with min wage let alone inflation. Back I when I worked in restaurants in high school for $3.35, waitresses made $2 + tips. Minimum wage has more than doubled and $2/hr is unchanged. Wait staff should easily make $5/hr + tips.California requires everyone to get min wage, unlike me waiting tables in NJ and NC growing up making $2.17/hr, which generally avoids this. However, there's also plenty of primarily ethnic restaurants where the workers aren't getting min wage.
Little of this relates to the tipping on an Uber/Lyft, which I think goes 100% to the worker though.
One thing waitstaff likes about the current system is their ability to not declare cash tips for taxes.
yeah, people on/below minimum wage really zero in on what their retirement is going to be like
yeah, people on/below minimum wage really zero in on what their retirement is going to be like