How much will you be charged for that hotel stay? The answer, of course, should be obvious: You’ll pay the published rate, plus government-imposed taxes and fees. Whatever that total turns out to be is your price.
27.07.2023 - 18:14 / smartertravel.com / Tim Winship / Dara Khosrowshahi
Remember when Uber was a tip-less service? Indeed, part of what made Uber the undisputed leader in rideshare services was its no-tipping policy, as featured front and center on the company’s website: “No cash, no tip, no hassle … When you arrive at your destination, just hop out—we’ll automatically charge the credit card on file. And there’s no need to tip.”
That verbiage is long gone from Uber’s website, and in July 2017 the company began actively encouraging riders to tip drivers: “Great service deserves to be rewarded.”
Related:WalletHub Says Delta’s Is the Best Frequent-Flyer Program. Is It?Now, Uber is using a combination of carrot and stick to encourage riders not just to tip, but to tip extravagantly.
In an interview with CNBC, Uber’s new CEO Dara Khosrowshahi as much as admitted that there is a link between tipping and rider ratings. “I am a very aggressive tipper right now. I pick the highest tip every time. Somehow my rating is getting better. I’m not sure if it’s aggressive tipping. Everybody, tip aggressively.”
Why bother currying a higher rider rating? To begin with, riders with higher ratings are more likely to get drivers with higher ratings. And if that’s true, the converse must be true as well: Lower-rated riders get lower-rated drivers.
And that’s just the beginning. Khosrowshahi also disclosed that the company is developing a package of perks available exclusively to higher-rated riders. No details yet.
Reward or extortion; carrot or stick. Uber has long had a reputation for ethically dodgy business practices. But the service’s ease and convenience and value—anchored by its no-tipping policy—combined to make it the clear choice compared to most traditional and non-traditional taxi options.
If Uber drivers are not adequately compensated from their share of published rates, the company should either raise the rates or increase drivers’ portion of every fare. Squeezing riders for ever-higher tips is a step back to a compensation system that’s not just antiquated, but disrespectful of workers.
Reader Reality Check
How has your relationship with Uber evolved?
More from SmarterTravel: Here’s How a Government Shutdown Affects Your Travel Delta Warns: No More Comfort Hedgehogs on Flights Could Airbnb Soon Have a Loyalty Program?After 20 years working in the travel industry, and 15 years writing about it, Tim Winship knows a thing or two about travel. Follow him on Twitter @twinship.
We hand-pick everything we recommend and select items through testing and reviews. Some products are sent to us free of charge with no incentive to offer a favorable review. We offer our unbiased opinions and do not accept compensation to review products. All items are in stock and prices are accurate at
How much will you be charged for that hotel stay? The answer, of course, should be obvious: You’ll pay the published rate, plus government-imposed taxes and fees. Whatever that total turns out to be is your price.
While its success is based principally on attractive pricing and ease of use, Uber’s business model critically depends on a ready supply of available and motivated workers. While there’s no sign that the supply of potential drivers is drying up, yet, the enthusiasm of Uber drivers seems to be eroding.
Planning a road trip this summer? For the sake of safety and peace of mind, your own and others’, add this to the pre-departure to-do list: a review of your driving habits. After all, while there’s nothing you can do to change other drivers’ bad habits, you are at least in control of your own.
In a big win for Uber, the ride-sharing service today announced a new partnership with American, the world’s largest airline. “The companies will work together to provide customers faster service, better airport navigation, rider promotions and mileage promotions.”
It’s a fact of loyalty-program life: Airline and hotel programs periodically adjust their award prices. Of course, those adjustments amount to price hikes more often than not. And, all things being equal, higher award prices amount to an overall devaluation of the program.
Since the rideshare service’s beginning, Uber has featured its drivers as a key element in its self-promotion. From the company’s website:
Given the choice, which reward would you choose for your next hotel stay: loyalty points or cash back?
A key selling point of rideshare services like Uber and Lyft is their transparency. Users know where their ride is, how soon it will arrive to pick them up, and how much the fare will be to their destination.
Beginning today, many visitors to Disney theme parks will pay more for the privilege of posing for selfies with Mickey & Co. But some will pay less. And others will pay a so-called regular rate, that is actually a price increase. Yes, it’s complicated.
What’s better than an Uber ride? A cheaper Uber ride, naturally!
Following is our regular summary of the latest travel news and best frequent traveler promotions reviewed during the past week.
Beginning earlier this month, some Uber customers in Pittsburgh have been treated to a preview of what many expect to be the future of ridesharing. Fourteen self-driving Ford Fusions began ferrying riders within a 12-square-mile section of the city’s downtown.