Uber, DoorDash Drivers Spell Out the New Rules of Tipping.
As the inflationary pressure persists, drivers working for food delivery and ride hailing companies are urging for higher tips to help them meet their expenses.
According to The San Francisco Standard, drivers are feeling disheartened by the mounting expenses of fuel and car maintenance, which are diminishing their already meager profit margins. Many drivers are of the view that without tips, it becomes nearly impossible to earn any significant amount of money.
Numerous drivers provided statements to share how significant tipping is for them. Oftentimes, it allows the driver to just get by.
Marianna Porras, an Uber driver in San Francisco, revealed that her earnings are minimal after accounting for gas expenses, to the extent that she declines to take passengers over bridges as they incur additional toll charges.
Being a single mother to four school-going children, Porras emphasized the importance of tips to meet her grocery bills. However, as ride prices have surged, it has become increasingly difficult for drivers to receive generous tips, exacerbating their financial situation.
“I think that we’re becoming more dependent on tips because of the costs not being covered by Uber. It helps me get paid out what I should be paid by Uber," she said.
Although Uber claims that its pricing scheme relies on several elements, such as base fare, time and distance rates and demand for rides, drivers are now heavily reliant on tips to sustain themselves.
According to Nicole Moore, the president of Rideshare Drivers United, a labor union for Uber and Lyft drivers, tips are imperative for drivers to receive reasonable compensation.
“In order to get paid at all, you have to get a tip, 20% is fair for restaurants, and also for drivers,” Moore said.
DoorDash stated that its drivers can preview the payment they will receive for an order before accepting it, and in California, drivers reportedly earned an average of $34 per hour in 2022. DoorDash also claims that a large majority of its customers leave tips for drivers.
“We empathize with the frustration of not receiving a tip or receiving a particularly low tip on an order, which is why tipping is one of three components that make up Dasher pay—base pay, tips, and promotions,” DoorDash said in an email.
DoorDash driver Ben Magana explained that tipping helps cover gas.
“Tips make the difference between whether a job is worth it or not,” Magana said. “Without a tip, sometimes I break even with just the gas it costs.”
Consumers must realize the significance of their tips in influencing the financial security of food delivery and rideshare drivers. Even a small tip can have a significant impact on someone trying to sustain themselves financially.