Uber this week claimed that it will for the first time permit drivers to gather tips via its smartphone app, a change of opinion from last company policy, as fraction of the broader attempts of the ride-services firm to enhance an often-controversial relationship.
Uber Technologies Inc., the San Francisco-based company, for years was in opposition of adding a feature for tipping to its app in spite of arguments from drivers for the extra money that would help reimburse for lessening wages. The problem had been an ancient source of dissimilarity between the drivers and the company.
Uber drivers are not employees, but independent contractors. And the lack of vacation and paid sick leave, price for car maintenance, and other costs should be reimbursed.
Beginning this week, drivers in Minneapolis, Houston, and Seattle can gather tips, Uber claimed. The update will be obtainable to all drivers in the states of the U.S. by the end of next months.
Uber also introduced other updates this week, including lowering the time travelers have to cancel a ride and paying drivers while they hang around for passengers, as it commences a 6-month push to enhance working conditions of the drivers. The privately held firm is esteemed at $68 Billion by investors.
An Uber spokesperson refused to state why the firm inverted its policy for tipping, though he highlighted to a blog post of the company that referred the change as a “long overdue.”
Lyft Inc., which is chief ride-services competitor of Uber in the U.S., has long permitted drivers to gather tips via its app. Lyft this week said that its drivers have gathered a total of $250 Million tips during the lifetime of the company, $50 Million of which was gathered in the past few months.
Uber was already facing stress to permit tipping in city of New York. The Limousine Commission and New York City Taxi few months back claimed that it was preparing to suggest a rule in coming July that would need Uber to put a tipping update to its app.
Well, now that the app has the tipping feature, drivers in the U.S. have started celebrating.