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Old Apr 29, 2016 | 11:30 am
  #102  
rasheed
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We could definitely say it is admirable that Uber is trying to get tipping for rides out of the habits of riders, but this may be a battle they don't win (unlike the airport access).

As Lyft has the tipping option and is starting to get aggressive to attract drivers, it doesn't matter what Uber thinks if it can't get drivers to accept its app that doesn't include tips (and if Lyft has more available drivers).

Interestingly, app tips would also increase credit card fees for Uber and would potentially dent its 19 cents revenue. I think in many cases, the merchant can't subtract card fees from tips. I am sure the cash option suits Uber just fine, but does add to friction in the process (which restaurants figured out long time ago).

Rasheed
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