Uber reaches tipping point with new in-app gratuity functionality as Kalanick resigns
Ride hailing app Uber has undertaken a screeching U-turn on its tipping policy by enabling an in-app gratuity option for the first time.
Uber reaches tipping point with new in-app gratuity functionality as Kalanick resigns
In a move apparently geared toward placating drivers the measure marks a major change in stance for the firm since the departure of CEO Travis Kalanick, who has now tendered his resignation following shareholder pressure.
Further concessions include compensation for drivers where a trip is cancelled more than two minutes after booking, new insurance plans, and better pay for transporting teenage passengers, in a bid to keep drivers onside following a bruising few months of scandals which have seen its market share start to slip.
The tipping service has already been rolled out in the cities of Houston, Minneapolis and Seattle with the expectation that every US city will be covered by the end of the month.
In a statement, Uber said: “Why now? Because it’s the right thing to do, it’s long overdue, and there’s no time like the present. This is just the beginning. We know there’s a long road ahead, but we won’t stop until we get there.”
Kalanick was a vociferous opponent of tipping, arguing the practice allowed firms to underpay workers.