[eridius]

If Uber drivers' pay ends up at exactly what it was before this, I think Uber's going to have a big problem as all their drivers ditch the platform. Uber already pays their drivers shit, there's no way they can justify taking even more of the money from each ride away from the driver.

As for whether they should tip in the first place, this wouldn't be a problem if Uber charged enough to begin with. But they got into a price war, with a company that does do tipping already, and they simply don't charge enough now to pay the drivers enough.

[HappyTypist]

Uber's margin on a ride is already 35-40% in US cities (source: UberPeople), thanks to their 'upfront fares' pricing (rider fare is not used for calculation of driver fares at all, drivers are paid per mile/km and min), their Booking fees, UberPool pricing disparities, and Surge disparities (a rider paying a 1.5x surge does not necessarily mean a driver is receiving 1.5x).

[kelnos]

> (rider fare is not used for calculation of driver fares at all, drivers are paid per mile/km and min)

Is this still the case? Uber recently lost a class-action suit about this (and I got a silly $42 check in the mail from it).

[HappyTypist]

They updated their ToS to reflect this.

[eridius]

Yes, Uber already takes a very high percentage. If they bump that up to e.g. 60% in order to capture the expected tip, it's hard to imagine drivers being ok with that.