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by dbelford 2691 days ago
Why did the gig economy pick up tipping culture? Why did Instacart need to?

I've read about why tipping exists in the restaurant industry and what happens to businesses that try to avoid it. But for these new businesses without established mores, I have to do moral calculus to decide whether to use them and how to tip. I wish they had avoided this. I tend to avoid them instead.

Did customers ask for this? The people providing the services?

Was it for the price discrimination? price discovery? Or to deflate the sticker price?

3 comments

I wonder if this starts organically: some customers paid tips in cash to their "shoppers", word gets around, people see other gig apps accepting tips, and so Instacart follows suit and adds this feature.

Perhaps it's a legal cover? If enough customers are paying cash tips, is it in Instacart's best interest to keep track of this (by building a tip feature into the app) for tax reasons?

Originally Uber didn't allow tipping. I think it was at the request of the drivers, ironically, though I could be wrong.
I'm guessing it's precisely to reduce wages and keep them low. The whole tipping is dumb and adds friction to the service. Just charge all-inclusive price. I am the same avoiding services that require tipping.