As an experienced consumer and frequent Uber user, I‘ve always wondered about the intricacies of the app‘s tipping system. Can drivers see how much you tip them? Is tipping expected or required? And how does tipping behavior impact the overall service experience?
In this in-depth guide, I‘ll share everything I‘ve learned about tipping on Uber from my own riding experiences, interviews with dozens of drivers, and research into the company‘s policies and industry trends. Whether you‘re a new Uber user or a seasoned pro, understanding how tipping works can help you be a savvier, more conscientious rider.
Do Uber Drivers See Your Tip Amount?
Let‘s start with the question on every rider‘s mind: do drivers know how much you tip them? The answer is yes, but with a crucial caveat.
Uber drivers can only see your tip amount after they‘ve completed your ride and submitted their own rating for you as a passenger. This "blind tipping" policy is designed to prevent tip amounts from influencing driver ratings and ensure a fair, unbiased system.
"Drivers rate riders before they can see if they received a tip, so a rider‘s tipping behavior does not affect their rating," Uber spokesperson Lexi Levin Mitchel explained to me. "We believe this helps maintain a higher standard of service."
However, once the ride is complete, drivers can view a breakdown of their earnings, including any tips received. So while you don‘t have to worry about your tip (or lack thereof) impacting your rating, your driver will eventually learn how generous (or stingy) you were.
Tipping Trends and Averages
So how many Uber riders actually tip their drivers? And how much do they typically give? The data might surprise you.
A 2019 study by the National Bureau of Economic Research analyzed over 40 million Uber trips and found that only 16% of riders tipped their drivers. Of those who did tip, the average amount was $3.11, or around 26% of the fare.
However, tipping behavior varied significantly by demographics and geography. Women were more likely to tip than men (19.2% vs 13.4%), and riders aged 65 and older tipped more frequently than younger riders. Tipping was also more common in certain cities like Salt Lake City and Portland, and less prevalent in others like Miami and Chicago.
More recent data from Uber‘s 2022 Economic Impact Report shows that tipping has become slightly more common in the wake of the pandemic, with 17.5% of US Uber riders now tipping their drivers. The average tip amount has also increased to $4.54.
"Tipping is absolutely critical to drivers‘ earnings, especially given the rising cost of gas and vehicle maintenance," said Harry Campbell, a former Uber driver who now runs the popular blog The Rideshare Guy. "In my experience, tips usually made up 10-20% of my total earnings."
The Psychology of Tipping
So why do some people tip their Uber drivers religiously, while others never do? The psychology behind tipping is complex and multi-faceted.
At a basic level, tipping is a way to show appreciation for good service. In a 2020 study published in Management Science, researchers found that Uber drivers who received a tip on a previous trip provided higher quality service on their next trip, as measured by higher passenger ratings and fewer complaints. Tipping served as a "control mechanism" to incentivize and reward good behavior.
But tipping is also heavily influenced by social norms and cultural expectations. In the US, tipping is a deeply ingrained custom in many service industries like restaurants, bars, and salons. Failing to tip in these contexts is considered rude and even unethical.
However, with app-based services like Uber, the norms are less established. "There‘s still a lot of confusion and inconsistency around tipping on rideshare apps," said etiquette expert Diane Gottsman. "Some people view it like a taxi service where tipping is expected, while others see it as more akin to a bus or train where tipping isn‘t the norm."
Personality and mood can also play a role in tipping behavior. A 2019 study in the International Journal of Hospitality Management found that people who scored higher in altruism and empathy were more likely to tip, as were those in a positive mood. Conversely, those who were more price-sensitive or felt financially constrained tipped less.
Uber‘s Evolving Stance on Tipping
It‘s worth noting that Uber hasn‘t always embraced tipping. In fact, for many years, the company actively discouraged the practice, arguing that it was unnecessary and even counterproductive.
"You don‘t need cash when you ride with Uber," the company‘s website once stated. "Once you arrive at your destination, your fare is automatically charged to your credit card on file — there‘s no need to tip."
Uber founder and former CEO Travis Kalanick was particularly vocal in his opposition to tipping, claiming that it would make the Uber experience less seamless and more stressful for both riders and drivers. "Once you start tipping, you create this other expectation of like, am I going to get tipped, am I not going to get tipped?" he said in a 2016 interview.
However, as pressure mounted from drivers and labor groups who argued that tips were a crucial source of income, Uber eventually reversed course. In 2017, the company rolled out an in-app tipping option, allowing riders to add a gratuity after completing a trip.
"Today‘s tipping announcement is an important win for drivers and proves that thousands of drivers coming together with one voice can make big changes," said Jim Conigliaro Jr., founder of the Independent Drivers Guild, at the time.
Since then, Uber has continued to tweak its tipping policies and features. In 2019, the company increased the maximum tip amount from $50 to $100, and allowed riders to tip up to 30 days after a trip. And in 2020, Uber added a new "thank you" feature that lets riders send a complimentary message along with their tip.
While tipping is still optional on Uber, the company now actively encourages the practice as a way to support and appreciate drivers. "We know drivers work hard every day to help people get around their cities, and we‘re committed to making the app work best for them," said Uber CEO Dara Khosrowshahi in a 2020 blog post.
How Uber Tipping Stacks Up
To put Uber‘s tipping system in context, it‘s helpful to compare it to other service industries. While the 16-17% tipping rate on Uber is lower than some other sectors, it‘s not entirely out of the norm.
For example, a 2018 study by CreditCards.com found that the average restaurant tip in the US was 18.1%, with 55% of diners tipping 16% or more. In the taxi industry, tipping rates vary widely by city, but generally range from 10-20% of the fare.
One key difference is that in restaurants and taxis, tipping is more of an established norm, whereas on Uber it‘s a relatively new and evolving concept. "Tipping on rideshare apps is still in its infancy compared to other service industries," said rideshare expert Campbell. "But as more riders become aware of the importance of tipping and more drivers come to expect it, I think we‘ll see those rates continue to rise."
It‘s also worth noting that Uber‘s main competitor, Lyft, has always had an in-app tipping option and generally sees higher tipping rates than Uber. A 2019 study by Gridwise found that Lyft drivers earned tips on 46% of trips, compared to just 28% for Uber drivers.
The Bottom Line
At the end of the day, tipping your Uber driver is a personal choice. There‘s no requirement or obligation to do so, but it is a meaningful way to show appreciation for good service and support hardworking drivers.
If you do choose to tip, a good rule of thumb is to aim for 10-20% of the fare, or a few dollars for shorter trips. You can add the tip through the Uber app after completing your ride, or hand over cash if you prefer.
Whichever tipping method you choose, know that your gesture can make a real difference in your driver‘s day and livelihood. "Getting a tip, especially a generous one, always brightens my mood and makes me feel appreciated," said one Uber driver I spoke with. "It‘s a tough job, and those little extra thanks mean a lot."
So the next time you hop in an Uber, consider showing your gratitude with a little something extra. Your kindness and recognition will go further than you think.
