Last updated: 03:00 PM ET, Mon September 19 2016

Uber Pays Over $380K Over Tipping Complaint

Car Rental & Rail | Gabe Zaldivar | September 19, 2016

Uber Pays Over $380K Over Tipping Complaint

Photo courtesy Flickr

We finally have a bit of closure on the Uber tipping front. Sadly, whether or not you should offer a gratuity to your driver is still somewhat open to conjecture.

Bloomberg Technology, however, reports preliminary authorization was granted the ride-sharing company to settle with customers over a dispute in tipping fees charged.

According to the website, Uber had once claimed that part of its fare included a 20 percent markup that counted as a tip for the user’s respective driver. The dispute alleges Uber was actually raking in 40 to 50 percent of that very charge for itself, so the driver was only getting a portion of that tip.

For essentially grabbing cash out of the tip jar at the close of day, Uber will now have to pay a handsome amount to previously unaware users.

As noted, San Francisco’s U.S. District Judge Edward Chen decided to grant Uber permission to, “pay about $384,000 for 47,000 users of the ride hailing company’s app.”

Uber isn’t exactly losing a great deal of money on the deal, though, and Bloomberg Technology reports that the original claim put the amount that the app collected from these fees at about $860,000.

Of course, many of you are now wondering the obvious question. Should we be tipping our Uber drivers – a practice that is far more transparent with like trips using Lyft? Back in May we set out to answer this very question and came back with a very simple answer: Sure, but it’s not expected.

We understand that’s a painfully gray response for a ubiquitous service so many of you utilize amid your travels, but until Uber actually changes its policy to add, say, a tipping portal for its app, this is the kind of advice you will get.

READ MORE: Is Instagram the New Out of Office Reply?

Drivers don’t expect a tip at all, and those who we spoke to wouldn’t ding your rating just because you get out of the car without tossing some cash their way. With that said, they are beyond appreciative if you do, and, contrary to when Uber started, the drivers will indeed accept the gratuity.

At the moment, settlement negotiations continue, via Bloomberg Technology, between Uber and drivers who wish to alter the company’s policy to reflect their status as full-time employees or to incorporate a tipping policy.

It’s clear that users would be fine doing just that as Lyft already incorporates tipping into its rides.


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