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TECHNOLOGY Thursday 22 June 2017
Uber allows riders to tip drivers via app, matching Lyft
By MICHAEL LIEDTKE and in a boating accident.
TOM KRISHER As part of its penance, Uber
AP Business Writers emailed a letter to riders in
SAN FRANCISCO (AP) — New York City last week
Uber is enabling passen- apologizing for its missteps.
gers to tip its U.S. drivers Uber also has wrangled
with a tap on its ride-hailing with drivers in the courts
app for the first time, part over its insistence on clas-
of a push to recast itself sifying them as contractors
as a company with a con- instead of employees to
science and a heart. avoid paying benefits and
Besides the built-in tipping overtime.
announced Tuesday, Uber The company so far has
is giving drivers an opportu- prevailed.
nity to make more money Holt said the company
in other ways too. talked to thousands of driv-
Riders will be charged by ers before adding tips to
the minute if they keep an the app. It’s also allowing
Uber car waiting for more more drivers to designate
than two minutes. Uber also the routes that they want to
is reducing the time riders travel to keep them closer
have to cancel a ride to to a destination.
avoid being slapped with a This Friday, Nov. 21, 2014, file photo taken in Newark, N.J., shows smartphones displaying Uber Uber has business reasons
$5 fee from five minutes to car availability in New York. to improve its image. Wide-
two minutes after summon- Associated Press spread publicity about its
ing a driver. a broader effort to reverse said drivers want Uber to caused legal headaches. bad behavior threatens to
Uber won’t take any of the damage done to Uber’s pay a minimum of $250 per The U.S. Justice Department turn off drivers and riders,
tip money. The San Francis- reputation by revelations eight-hour shift. is investigating Uber’s past giving them incentive to
co company will continue of sexual harassment in its Uber wouldn’t budge in usage of phony software switch to Lyft.
to collect part of ride-can- offices, allegations of trade previous talks about tip- designed to thwart regula- It’s difficult to determine
cellation fees, as well as the secrets theft and an inves- ping but relented when it tors. Uber also is fighting al- whether Uber’s misdeeds
waiting-time charges. tigation into efforts to mis- appeared that poor driver legations that it’s relying on have cost ridership nation-
The tipping option, long lead government regula- relations were hurting its a key piece of technology ally. In New York City, rider-
available in the app of rival tors. bottom line, said Tavares, stolen from Google spin-off ship has grown, but Uber’s
Lyft, will start Tuesday in Se- “These drivers are our most a steward for the Indepen- Waymo to build self-driving growth rate is slowing when
attle, Houston and Minne- important partners, but we dent Drivers Guild, which cars. compared with Lyft.
apolis. Uber wants it to be haven’t done a very good had pressed for tipping. Drivers aren’t the only peo- In early January, Uber ac-
in all U.S. cities by the end job honoring that partner- “It’s about time that they ple Uber is trying to treat counted for 56.8 percent
of July. The other features ship,” said Rachel Holt, re- saw the error of their ways,” better. of all rides in the city, while
will roll out in August. gional general manager in Tavares said. After an internal investiga- Lyft had 9.5 percent. By the
The attempt to smooth over the U.S. and Canada. She A proposed law in New tion uncovered sexual ha- end of April, Uber’s share
its sometimes testy relation- is on the leadership team York City could have rassment, bullying and oth- rose to 57.2 percent, but
ship with drivers is part of running Uber while CEO forced Uber to enable in- er boorish behavior, Uber Lyft grew 2.2 percentage
Travis Kalanick is on leave. app tipping in its largest fired more than 20 employ- points to 11.7, according to
The expanded earnings U.S. market by the end of ees and pledged to create data from the Taxi and Lim-
opportunities are the first this summer, if it had been a more harmonious culture. ousine Commission.
step in what Uber is billing approved. A more extensive report A rider boycott in late Jan-
as “180 days of change” for While building the world’s from the law firm of former uary knocked Uber rider-
its U.S. drivers. Holt wouldn’t biggest ride-hailing service U.S. Attorney General Eric ship down to 52.7 percent,
reveal the rest of the cam- over the past eight years, Holder chastised Uber’s while Lyft grew to a 12.8
paign. Uber developed a reputa- leadership and recom- percent share. But Uber has
Drivers are happy about tion for cutthroat tactics mended changes that since recovered.
the tips but would like more that have occasionally Uber’s board adopted. A backlash could deepen
from Uber in New York City, outraged government reg- Uber also said Kalanick was Uber’s losses, which totaled
where costs are high and ulators, drivers, riders and its taking an indefinite leave $2.8 billion last year. Uber
they have trouble making employees. amid criticism of his man- was valued at nearly $70
a living, said Luiny Tavares, The company’s hard- agement style and follow- billion the last time it raised
a driver in Manhattan. He charging style also has ing the death of his mother money.q