Tipping is part of a new initiative called the 180-day commitment, during which Uber says it will be "making meaningful changes and improvements" to the driving experience.
Uber wouldn't budge in previous talks about tipping but relented when it appeared that poor driver relations were hurting its bottom line, said Tavares, a steward for the Independent Drivers Guild, which had pressed for tipping.
Beginning on Tuesday, drivers in Houston, Minneapolis and Seattle can collect tips. Uber riders and UberEATS customers will then be able to tip a driver after rating their trip.
As part of an effort to cast itself as a better place to work, Uber announced Tuesday that it will add the option to tip its drivers.
Uber will allow passengers to tip drivers after years of gouging driver earnings
He was right, as anyone who has ever tipped another individual can attest - which makes getting it right imperative for Uber.
Competitor Lyft supported tipping since its early days. The company's tipping service will trickle into marketplaces over the next few weeks and is expected to be operational everywhere by the end of July.
Driver pressure will have played a significant factor - but it is likely that wider concerns are what prompted this latest move by Uber, a company left in tatters after a hugely critical report into its culture. Additional changes to the driver-side of the service are listed here.
Drivers in Seattle, Houston and Minneapolis will get to enable the feature first - but the company said it would roll it out across the USA by the end of next month. The $68 billion startup has been roiled by a series of crises in recent months, ranging from sexual harassment allegations to an executive exodus, to a video surfacing of CEO Travis Kalanick arguing with his Uber driver. There will be preset tip amounts to choose from, or the rider can manually enter a tip amount. But drivers were unhappy and it wasn't working the way they desired. "In expanding so quickly, we failed to prioritize the people that helped get us here". In fact riders tell us that one of the things they like most about Uber is that it's hassle-free.