Ridesharing has revolutionized the way we travel, offering convenience and flexibility to millions of passengers worldwide. As the popularity of rideshare services continues to grow, the importance of tips in compensating drivers for their services has also become a significant topic of discussion. Especially in the food delivery industry - such as Uber Eats, DoorDash, Instcart, and Amazon Fresh - where an abundance of recent viral videos has revealed the frustration delivery drivers have with lack of tipping by customers.  

Tipping your rideshare and delivery drivers is an important practice that benefits both drivers and customers. And here are the 6 reasons why I think you should consider tipping your drivers:

1. Delivery Platforms Take Large Commissions from Drivers

First, it’s essential to understand the economics of rideshare and food delivery. All rideshare and delivery drivers are independent contractors, using their personal vehicles to provide transportation and food delivery services. They typically earn a portion of the fare or delivery fee charged to the customer, while the rideshare and delivery platforms takes a commission. Unfortunately, this commission can sometimes leave drivers with a lower take-home pay than expected.

2. Tipping Enhances Driver’s Pay

Tips play a crucial role in enhancing the earnings of rideshare and delivery drivers. By tipping their drivers, customers can help bridge the gap between the base fare and the driver’s actual earnings. This extra income can significantly impact drivers’ lives, helping them cover expenses such as vehicle maintenance, gas, insurance, and even supplementing their overall income.

3. Tipping Incentivizes Drivers to go the Extra Mile

Tipping is a way for customers to show appreciation for exceptional service provided by the driver. It recognizes their efforts in creating a pleasant and safe ride experience. It recognizes their efforts in making sure your food is delivered complete and in a timely manner. The possibility of receiving tips incentivizes drivers to go the extra mile, providing superior customer service to increase their chances of receiving tips. Tips can substantially boost drivers’ earnings, helping them maintain a reasonable income for their hard work.

4. Benefits for Riders

Tipping is not just advantageous for rideshare drivers; it can also bring benefits to riders:

a. Improved Availability: When drivers receive fair compensation, they are more likely to continue driving for the rideshare platform. This increased driver availability translates into shorter wait times and a more efficient rideshare system.

b. Enhanced Ride Quality: With the motivation to earn tips, drivers are likely to offer a more pleasant and personalized ride experience, ensuring passenger comfort and satisfaction.

c. Favorable Reputation: Regular tipping by passengers contributes to a positive reputation for the rideshare community. This encourages more people to use the service, leading to continued growth and improved services.

5. Benefits for Drivers

While tipping is not mandatory, it is highly appreciated and can make a significant difference in a driver’s day. Here are some tipping etiquette tips for passengers:

a. Tip Based on Service: Consider tipping based on the quality of service received. If the driver was friendly, attentive, and followed the best route, rewarding them with a higher tip is a gesture of appreciation.

b. Tip with Cash or In-App: Some rideshare platforms allow in-app tipping, while others might not. If tipping in cash, consider having small bills on hand for convenience.

c. Tip According to Circumstances: For exceptional situations like inclement weather or heavy traffic, a slightly larger tip can show empathy and gratitude for the driver’s efforts.

6. Luxury Services Require Tips

As a customer, you wouldn’t expect to receive service at a restaurant without properly tipping your server. And you wouldn’t expect to receive outstanding service at your favorite cocktail bar without properly tipping your bartender. Food delivery should come with the same expectation: you’re paying for a luxury service where tips are subsidizing the server or delivery driver’s income.

Uber Eats and DoorDash delivery drivers receive a base fare as low as $1.50 per delivery. Some food deliveries take up to 45 minutes to complete - driving to the restaurant, picking up the order, and then driving to customer’s drop-off location. So, without a proper tip, the driver will only receive a base fare of $1.50 for those 45 minutes worked. That’s lower than minimum wage. A lot lower. And without safety net protections in place for independent contractors to make up that difference, your delivery driver will be operating at a loss. A big loss. 

“A luxury, once enjoyed, becomes a necessity.” - Northcote Parkinson

Tipping culture can vary significantly between different countries and regions. In some cultures, tipping is customary, while in others, it might not be as prevalent. As the rideshare and food delivery industry is global, understanding and respecting local tipping customs can positively impact the interactions between drivers and passengers. However, tipping the service industry is still considered normal etiquette in the States. And this should include your rideshare and food delivery drivers.

Conclusion

Tipping serves as a form of recognition for outstanding service, encourages drivers to provide the best experience possible, and helps drivers maintain a fair income. On the other hand, riders enjoy improved ride quality and shorter wait times when drivers are incentivized to continue their services.

By tipping rideshare and food delivery drivers, riders actively contribute to the success and growth of the rideshare community, creating a win-win situation for all parties involved. So, the next time you take a rideshare trip or order food delivery, consider leaving a tip to show appreciation for your driver’s dedication and hard work.