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topicnews · October 24, 2024

Uber Now Requires Tips in Advance to Avoid Long Waits at Istanbul Airport – Is Your Airport Closest?

Uber Now Requires Tips in Advance to Avoid Long Waits at Istanbul Airport – Is Your Airport Closest?

Uber Now Requires Tips in Advance to Avoid Long Waits at Istanbul Airport – Is Your Airport Closest?

from Gary Leff

When Uber started, the cost of the ride had increased including tip. The idea was to create a seamless experience. There is no payment at the end of the trip. You request the ride, get out of the car and you are automatically billed.

The drivers wanted to tip because they thought they would earn more if the drivers voluntarily decided to give them money. But that’s not exactly how tipping works. Uber pays drivers less because passengers may pay them more.

Uber sets driver pay based on their ability to attract riders. If they have enough drivers, that means they pay enough. The more customers tip (or drivers think they will tip), the less Uber has to pay to maintain a sufficient driver base. And since tipping was introduced, driver pay has fallen significantly.

The decline in driver pay isn’t just due to tips. In fact, relatively few drivers tip. People tip much more for food orders than for rides.

No wonder riders play games with the rides. When Uber started, the algorithm was intended to be a solution to redlining. The driver didn’t know where they were going until the passenger was in the car. No more taxis asking where you’re going and then refusing to pick you up. This anti-discrimination measure is also gone.

In Istanbul, it looks like if you want an Uber airport pickup you have to pay for it.

Add a tip to speed up pickup. A driver may be more likely to accept that ride if you add a tip. Your driver will receive 100% of the tip. If you add a tip now, you won’t be able to change it later.

I’m not sure if bidding for a driver is tipping, because tipping isn’t Strictly speaking stand for “ensuring prompt service”. But it’s just another reason Uber has lost its grip since hiring Expedia CEO Dara Khosrowshahi to run the company.

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