Uber drivers earn tips worth $600 million annually

Uber drivers earn tips worth $600 million annually


LOS ANGELES: Since the launch of the in-app tipping for Uber drivers in the United States last year, Uber has entertained approximately $600 million worth of payments in tips to its drivers. In August, Uber hit $50 million in tips.

Since introducing mid-trip ratings and tips in May, there has been a 30% increase in tipping, Uber product manager Dhruv Tyagi wrote in a blog post. In April, Lyft announced drivers hit $500 million in tips since its launch, with tip averages increasing by nearly 8% in 2017 compared to 2016.

Lyft, of course, is not available in nearly as many markets as Uber. Lyft only operates in the U.S. and Canada, while Uber operates in the U.S., Canada, Central and South America, Europe, the Middle East, Africa, East Asia, South Asia, Southeast Asia, Australia and New Zealand. So, more continents and cities mean more opportunities for tipping.

Uber drivers make the most tips in Salt Lake City, Utah, San Antonio, Texas, Kansas City, Mo, New Orleans, La. and Nashville, Tenn. When Lyft ran its numbers, it found riders are most generous in New York City, Atlanta, Detroit, Dallas, San Jose, Minneapolis, and Westchester County, NY.

In terms of popular times to tip, people tip the most on Thursday, Friday, Saturday. Perhaps unsurprisingly, they tip the most at 8:12 pm on Thursday, 10:33 pm on Saturday and 5:17 am on Sunday.


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Urooj Fatima

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