This afternoon, the city's Taxi and Limousine Commission agreed to write a rule that would require ride-hailing services that operate in NYC to include the ability to tip directly from their respective apps.
Uber drivers in NY may soon be able to earn tips thanks to a new proposal.
"Allowing riders to tip is an important first step to helping drivers increase their earning potential", Tavares said.
Uber's partnership with the Machinists Union, in which a sub-group known as the Independent Drivers Guild (IDG) has been formed, came in response to mounting pressure to allow Uber drivers to unionise. The TLC said it will propose the rule by July. "Cuts to driver pay across the ride hail industry has made tipping income more important than ever".
Uber is valued at $70 billion. The abolition of 25% commission from drivers being charged by the app-based platforms is also among their major demands.Association vice-president Ravi Rathore said the drivers will take out a protest march against the government since it had failed to resolve their dispute with the cab aggregators.
Last month, Lyft announced that its in-app tipping option had hit the "milestone" of $200 million in driver gratuities. Unlike competitor Lyft, Uber does not now enable passengers to tip through its app.
The consumer protection arm of the California Public Utility Commission found Uber Technologies has violated "zero-tolerance" rules governing drunken-driving complaints on 151 occasions over the course of a year, out of 154 complaints reviewed. The company then "clarified" its stance on tipping to say that it doesn't mind tipping, but that it feels drivers somehow prefer knowing exactly what they're getting financially and that riders view tipping as a "hassle" (which rings a bit hollow considering how easy and unintrusive the tipping system Lyft uses is).
Uber, meanwhile, has previously argued that tipping is influenced by personal bias (race and gender have both been associated with tipping variances), and that it could lead to drivers flocking around affluent neighborhoods where people are likely to tip more. "That's not what happened". "I found myself having to work longer hours to make the same money", he said.
Uber, in a statement, said it had not seen the the proposal but wants to help drivers.
"Uber is always striving to offer the best earning opportunity for drivers and we are constantly working to improve the driver experience", Uber spokeswoman Alix Anfang said in a statement.
Uber and other ride-booking services in New York City could be required to offer in-app tipping for their drivers if a proposed city regulation is approved. "But it is just one piece of a more comprehensive effort to improve the economic well-being of drivers".
The ruling followed an April 6 hearing at the TLC on industry economics, at which a succession of drivers testified to the difficulty of making a living in an increasingly crowded market.
The Guild has pledged not to try to formally unionize unless drivers' legal classification changes.