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by CydeWeys 3289 days ago
The thing about tipping is that it actually helps to solve one of Uber's biggest problem: Their cash burn rate. Tipping allows them to move a good chunk of their driver costs onto their customers, same as how it works for servers in restaurants. I understand the ideological opposition to it, but they might not be able to afford to not have tipping.
1 comments

It's a trade off, company versus customer experience. For a private company like Uber it's a no brainer. They should take the loss to make the user experience better and to acquire more users. Low cost and frictionless payment, that's what they should be aiming for the long run. Asking for your users to pay more while lowering your drivers paychecks is a recipe for failure at that stage of the game.
They can't afford to take the loss, though. They are running out of runway and have less than a year less. They are already huge; at some point they have to make the shift to being profitable.