Ridesharing company Uber announced on Tuesday that it will now allow drivers to collect tips through its phone app.
Seattle-area Uber drivers are praising the company's move to allow tipping on the ride-service app for the first time, saying the change marks a positive shift in how Uber is prioritizing drivers' complaints.
The tipping feature already has launched in Seattle, Minneapolis and Houston, and should be available in all USA cities by the end of July.
Uber plans to introduce the feature gradually to ensure a smooth rollout, though it will be available to all USA markets by the end of July.
Uber also rolled out other changes on Tuesday, including paying drivers while they wait for passengers, as it begins a six-month push to improve drivers' working conditions. If a passenger cancels a vehicle more than two minutes after the driver has accepted the assignment, a cancellation fee will be charged and paid to the driver. Other earnings enhancements include driver injury protection insurance, a teen fare that pays drivers more for teen account trips and eliminating unpaid wait times, among others.
"For the next 180 days (and beyond), we'll be making meaningful changes to the driving experience".
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Uber, which typically doesn't like regulators telling it what to do, changed course on tipping just weeks before a scheduled Taxi and Limousine Commission hearing on the subject.
Riders will be able to tip drivers by using the Uber app. This was the most requested feature from Uber drivers who will not see Uber fees deducted from their tips.
The announcement came the same day as ride-hailing competitor Lyft, which returned to the Houston market earlier this month, announced that its drivers have earned more than $250 million in tips. One person suggested tipping after a driver rates the passenger, and another suggested tipping be done in a discreet fashion so money is not tied to a person's identity.
"While Uber does not require riders to offer drivers a cash tip, you are welcome to do so", the company's website reads.
Meanwhile, The Associated Press reports that the CEO of Uber resigned after being pressured from investors at a "pivotal time for the company". Some drivers work for both companies.
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