Tipping Is Coming to Uber, and It’s Going to Be Awkward
What You Need to Know About the Uber Settlement
Uber Technologies Inc.'s mega settlement of as much as $100 million helps it solve a major legal liability around workforce classification, but another piece of the agreement could make for some uncomfortable situations in the near future.
As part of the settlement with drivers in California and Massachusetts, Uber has agreed to notify customers more clearly that tips are not included in fares and give tacit approval for optional gratuity. Drivers can now solicit cash tips by asking passengers or posting signs in their vehicles. Shannon Liss-Riordan, a lawyer representing the drivers, said riders should start seeing gratuities as a major part of an Uber driver's income. In other words, more like a cabbie. “I believe that, with this information, many riders will begin tipping their drivers, which will increase drivers’ pay substantially,” she said in a statement to the court.