Uber’s deceptive marketing description regarding tips can be found on Uber’s website “https://help.uber.com/h/1be144ab-609a-43c5-82b5-b9c7de5ec073”, which states:
“You don’t need cash when you ride with Uber. Once you arrive at your destination, your fare is automatically charged to your credit card on file — there’s no need to tip.”
The company even instructs drivers to refuse cash tips if customers offer them. As a result, many customers might assume that Uber provides drivers with a substantial amount of pay, equivalent to getting base pay plus a tip. But in reality, this is far from the truth.
Uber charges customers a base fee, fee based on distance, fee based on mileage, “safe rider fee”, and finally surge charges. Uber does not pass on any of the safe rider fee to drivers, but pockets the entire amount. Of the remainder, Uber keeps anywhere from 25-30%. From what’s left, drivers have to pay for gas, tolls, and any other car-related expenses. By the time all of this, as well as waiting time, is factored in, many drivers are essentially making less than minimum wage, with no tips allowed to make up for it. By saying “no tip is needed,” the company is really saying that it does not believe drivers deserve enough pay to live on.
Customers on Lyft at least have the option of designating an extra amount as a tip, which they can be assured goes to the driver. Uber refuses to allow this, keeping its drivers struggling.