New York could force Uber to change its policy on tipping drivers

By Steven Overly

The Washington Post

New York City may force Uber to change how it handles driver tips.

The city’s Taxi and Limousine Commission is weighing a proposal that would require all for-hire drivers to offer riders the option to tip using the same method of payment they used for the ride. In Uber’s case, that would mean adding a tipping option on its mobile app where riders currently pay using a credit card.

The change would be a significant one for Uber, which has avoided past calls to add electronic tipping. New York City is the company’s largest U.S. market, making it painful to exit should Uber choose not to comply with the potential policy change. It could also serve as a bellwether for other regulators to pursue similar policies.

The New York Times reported the news earlier Monday.

Once the commission officially proposes the change, it must be certified by the city’s law department and subjected to public comment. After a public hearing, the commission must vote to approve the measure.

An Uber spokesman said the company plans to review the proposal when it is officially released in the coming months.

“Uber is always striving to offer the best earning opportunity for drivers and we are constantly working to improve the driver experience,” the company said in a statement.

While Uber technically permits cash tips, its website describes rides as a “cashless experience” and states that “tipping is voluntary.”

“As a rider, you are not obligated to offer your driver a gratuity in cash,” the website states. ” If you decide you would like to tip, your driver is welcome to accept.”

Uber’s chief rival, Lyft, has offered the option to tip drivers in its app since it was founded in 2012. Last month, Lyft touted that its drivers have collected $200 million in tips in that time.

Uber drivers have pushed the company to add an electronic tipping option, something it has declined to do thus far. In New York, a petition from the Independent Drivers Guild contends that drivers are missing out on thousands of dollars because there is no electronic tipping option. That petition has garnered more than 11,000 signatures.

Uber executives pledged last month to improve relations with drivers, who have complained that the company’s tipping policy and declining fares have impinged their earning potential. Uber CEO Travis Kalanick was filmed arguing with a driver who claimed that the company has reduced the price of its service at the expense of drivers.

Rachel Hunt, who runs marketing and operations in the United States and Canada, told reporters last month that the company planned to give drivers greater say in disputes with riders over canceled trips and reports of poor service.

Talk to us

> Give us your news tips.

> Send us a letter to the editor.

> More Herald contact information.

More in Business

The livery on a Boeing plane. (Christopher Pike / Bloomberg)
Former Lockheed Martin CFO joins Boeing as top financial officer

Boeing’s Chief Financial Officer is being replaced by a former CFO at… Continue reading

Izaac Escalante-Alvarez unpacks a new milling machine at the new Boeing machinists union’s apprentice training center on Friday, June 6, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Boeing Machinists union training center opens in Everett

The new center aims to give workers an inside track at Boeing jobs.

Some SnoCo stores see shortages after cyberattack on grocery supplier

Some stores, such as Whole Foods and US Foods CHEF’STORE, informed customers that some items may be temporarily unavailable.

People take photos and videos as the first Frontier Arlines flight arrives at Paine Field Airport under a water cannon salute on Monday, June 2, 2025 in Everett, Washington. (Olivia Vanni / The Herald)
Water cannons salute Frontier on its first day at Paine Field

Frontier Airlines joins Alaska Airlines in offering service Snohomish County passengers.

Amit B. Singh, president of Edmonds Community College. 201008
Edmonds College and schools continue diversity programs

Educational diversity programs are alive and well in Snohomish County.

A standard jet fuel, left, burns with extensive smoke output while a 50 percent SAF drop-in jet fuel, right, puts off less smoke during a demonstration of the difference in fuel emissions on Tuesday, March 28, 2023 in Everett, Washington. (Olivia Vanni / The Herald)
Sustainable aviation fuel center gets funding boost

A planned research and development center focused on sustainable aviation… Continue reading

Helion's 6th fusion prototype, Trenta, on display on Tuesday, July 9, 2024 in Everett, Washington. (Olivia Vanni / The Herald)
Helion celebrates smoother path to fusion energy site approval

Helion CEO applauds legislation signed by Gov. Bob Ferguson expected to streamline site selection process.

Support local journalism

If you value local news, make a gift now to support the trusted journalism you get in The Daily Herald. Donations processed in this system are not tax deductible.