# Lyft, Please Remove in-App Tipping



## Maven (Feb 9, 2017)

Am I nuts, trolling, or just being contrary? None of the above. Isn't the in-App tipping one of the best reasons to prefer Lyft over Uber? Well, not so much. There are some real reasons that no reasonable driver should want Lyft to continue to have its current in-App tipping. Read on then see if you agree. Lyft in-App tipping results in:

All (or most of) your tips reported by Lyft to the IRS, that wants it's "cut". Also pay the State and possibly city taxes.

No significant increase in Tips actually received. I've received a few $20+ tips along with $10, $5, $4, $3, $2, and hardly any $1 tips (which embarrasses most PAX who give tips) driving for Uber. Lyft drivers, who already have in-App tipping, report an average tip of only $1 per ride. https://uberpeople.net/threads/actual-in-app-tips-recieved.159389/
The Lyft tipping feature does not offer the PAX any easy way to give their driver a 5%, 10%, 15% or 20% tip, the way they normally would in a restaurant.

Incorrect rating of PAX. An Uber PAX that gives me a tip is almost guaranteed a 5-star rating. With Lyft in-App tipping, I cannot know which PAX actually tips or not until long after the ride ends and I give my rating. I am too busy (lazy) to later change that rating after checking if that PAX tipped.

No change to the "inequality" issue, where two drivers, transporting the same PAX on the same route receive different tips.
If Lyft were smart, they would:

Modify the current in-App tipping feature to allow PAX to tip a percentage of the fare.
Modify the current in-App tipping feature to allow PAX to give driver incentives to accept long-distance requests.

Remove the tipping feature entirely, while still encouraging PAX to tip drivers. That alone would make Lyft appear superior to Uber.
*Please reply if you still disagree or there are other reasons that I have missed.

Please take the poll, or consider changing your vote, AFTER rethinking your prior position.*


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## Certain Judgment (Dec 2, 2016)

Hey Travis! How goes it?


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## Maven (Feb 9, 2017)

Certain Judgment said:


> Hey Travis! How goes it?


If you were not such a nube and read my other postings then you might realize that I am no fan of Travis.


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## Sub Guy (Sep 22, 2016)

My mileage varies quite a bit.

I like the incentive option as I maxed out a ride on a Saturday Night driving from Virginia Beach to Richmond.

Everything else I disagree with....because:
1. many Lyft riders tell me they like the option to tip in the app and over half of them actually do tip vice use it as an excuse or promise to tip.
2. Most folks that do tip in the app do so at least a couple of bucks with most either tipping 5 or 10. in my market that usually ends up being 50%-200% of the amount I make for the drive itself. If they simply got to choose a percentage figure in the app, I believe the tips would go down as most are unlikely to tip (knowingly) form than 25%
3. I don't like giving the government any more of my money than I am required to but am willing to pay my legally required taxes. I can not support getting rid of the tip feature because it makes it harder to cheat on my taxes and commit fraud.

In the restaurant industry, it is always a struggle to get servers to claim their tips when they clock out. IF they ever get audited, the IRS executes a court order to obtain the credit card transactions conducted by that employee and bases the "tip rate" on all sales the same as the credit card rate. For example:

A server has sales of $100,000 during the year and only claims $1, 000 in tips (1%) The IRS chooses to audit the server and finds that in the $30,000 in sales put on credit cards the employee received $6,000 in tips. Already, they have proof that the server under reported since they received $6, 000 from credit cards alone. The IRS then "assesses" that in reality the server was tipped 20% (6,000/30,000) on all sales and should have claimed a total of $20,000 in tip income. So, in addition to owing another $19,000 in reportable income ($2,850 in taxes at 15%) they also face fines and penalties that drive the amount due up to nearly $4,000, due IMMEDIATELY upon determination of fraud. Not worth the risk and the "criminal" record you now have. In my life, this would cost me my security clearance and my full time job - DEFINATELY not worth the risk to me and my family. Your mileage may vary (YMMV)


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## Another Uber Driver (May 27, 2015)

Maven said:


> All (or most of) your tips reported by Lyft to the IRS, that wants it's "cut". Also pay the State and possibly city taxes.
> 
> 
> 
> ...





Anyone who wants any sympathy or support from me for ducking taxes is setting himself up bigly for a majorly serious disappointment. I must pay my taxes; why should not everyone else? Hillary did not win, so I do not have to like it, but I do have to pay. If I have to pay, so should everyone else. 
The cab drivers here were squawking about the credit card acceptance for the same reason (among others). I told them the same thing. I have no sympathy for them. I pay my taxes; they can pay theirs.

You can "encourage" the customers to tip, all that you will. If there is no way for them to do so conveniently, they will not do it. Further, there are many customers who do not carry _*any*_ cash, not even a couple of singles. I do carry a few dollars in cash in case GF wants a pack of gum, I want a lottery ticket here or there or I pull up to parking meter that does not accept plastic.

Now, if I am going to use UberX or Uber Black, I will make sure that I have a couple of dollars to tip. If I am going to use Uber Taxi, there is no worry as there is a tip feature on Uber Taxi.


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## bigdaddy (Oct 27, 2015)

Maven said:


> Am I nuts, trolling, or just being contrary? None of the above. Isn't the in-App tipping one of the best reasons to prefer Lyft over Uber? Well, not so much. There are some real reasons that no reasonable driver should want Lyft to continue to have its current in-App tipping. Read on then see if you agree. Lyft in-App tipping results in:
> 
> All (or most of) your tips reported by Lyft to the IRS, that wants it's "cut". Also pay the State and possibly city taxes.
> 
> ...


_All (or most of) your tips reported by Lyft to the IRS, that wants it's "cut". Also pay the State and possibly city taxes.
_
Yes. In other words, following the law. Even cash tips are supposed to be reported. Pay your damn taxes.

_No significant increase in Tips actually received._

So wouldn't this factor just be neutral then?

_The Lyft tipping feature does not offer the PAX any easy way to give their driver a 5%, 10%, 15% or 20% tip, the way they normally would in a restaurant._

As it shouldn't. This would result in some tiny, ridiculous tips. 5% tip on a $5 base fare? Golly gee, Hoss...thanks for those two bits.

_Incorrect rating of PAX. An Uber PAX that gives me a tip is almost guaranteed a 5-star rating. With Lyft in-App tipping, I cannot know which PAX actually tips or not until long after the ride ends and I give my rating._

Good. Because down-rating someone because they didn't tip you is a ****** move. I know some people think it's just fine. They're wrong. Total ****** move. Want guaranteed tips? Go drive a cab.

_No change to the "inequality" issue, where two drivers, transporting the same PAX on the same route receive different tips._

Oh, well. We're not the bus. We're not all equal. If I'm nice and make my passenger feel like they had a pleasant or even entertaining ride and they decide to tip me while another driver taking someone the same place is a dick or creeps their passenger out so they don't tip, well that's inequality that I think we can all get behind.

The in-app tipping is a difference-maker for me, in every way. Passengers like it, I like it, I make an extra 10-20 percent from it. It's one of the main reasons I drive for Lyft much more than for Uber. There's little I would change about it.


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## HarryFromLakeland (May 31, 2016)

Maven said:


> Am I nuts, trolling, or just being contrary? None of the above. Isn't the in-App tipping one of the best reasons to prefer Lyft over Uber? Well, not so much. There are some real reasons that no reasonable driver should want Lyft to continue to have its current in-App tipping. Read on then see if you agree. Lyft in-App tipping results in:
> 
> All (or most of) your tips reported by Lyft to the IRS, that wants it's "cut". Also pay the State and possibly city taxes.




To echo what others have already posted, you are supposed to report your tips whether they are cash or in-app. Tax dodging is not a good way to garner sympathy.

-Harry


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## Maven (Feb 9, 2017)

It seems pretty unanimous that people feel

It is a civic duty to pay reasonable taxes, including on Tips received.
The IRS has repeatedly proven that they can catch attempts to evade taxes by those receiving significant Tips like waiters and waitresses. The penalties and risks are not worth it.
I would appreciate additional comments on the other points, not related to taxes, in the initial post. Only a few posters have addressed them.


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## wk1102 (Dec 25, 2015)

bigdaddy said:


> Good. Because down-rating someone because they didn't tip you is a ****** move.


How so?


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## Chauffeur_James (Dec 12, 2014)

Maven said:


> Am I nuts, trolling, or just being contrary? None of the above. Isn't the in-App tipping one of the best reasons to prefer Lyft over Uber? Well, not so much. There are some real reasons that no reasonable driver should want Lyft to continue to have its current in-App tipping. Read on then see if you agree. Lyft in-App tipping results in:
> 
> All (or most of) your tips reported by Lyft to the IRS, that wants it's "cut". Also pay the State and possibly city taxes.
> 
> ...


I completely agree with you as I've mentioned in several posts I pray that Uber doesn't add a tipping option. People that tip like to show you they tipped. I'll take 20 Lyfts and receive maybe $10 on that. On Uber with my tipping tablet I probably make $30 on those same $20 rides. I tried Lyft for a week and didn't drive for Uber at all and the week before I made about $100 on tips with Uber and with Lyft that week I made $30


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## BurgerTiime (Jun 22, 2015)

Extra $460 in tips for March. Lyft does away with tipping I will quit rideshare for good. Already quit Uber.


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## Jesusdrivesuber (Jan 5, 2017)

Hmm, what if the app asked:

Would you like to automatically give the driver 20% tip?

or

Insert another amount.

That would put a serious plus to doing Lyft, guaranteeing at least a dollar in tips on every trip? Uber would never top that.


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## Rick N. (Mar 2, 2016)

Now that we're on this subject, did any body cash in Christmas week when they said they'll double our tips? I usually make $20-40 a week on tips but that week (when people are supposed to be more generous) i only made $0 on tips.


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## Cableguynoe (Feb 14, 2017)

Chauffeur_James said:


> I completely agree with you as I've mentioned in several posts I pray that Uber doesn't add a tipping option. People that tip like to show you they tipped. I'll take 20 Lyfts and receive maybe $10 on that. On Uber with my tipping tablet I probably make $30 on those same $20 rides. I tried Lyft for a week and didn't drive for Uber at all and the week before I made about $100 on tips with Uber and with Lyft that week I made $30


In restaurants, generally you walk out of the restaurant before the waitress finds out if you tipped or not. So If Uber/Lyft get to the point where tipping is considered normal, people wont feel the need to show you they tipped.

The fact that the tipping option is right there in their app, people know it's ok to tip. People still think they're not supposed to tip with Uber. If Uber put it in the app, it would change their point of view immediately.


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## ddelro219 (Aug 11, 2016)

I don't wholeheartedly agree with basing a pax rating on whether they tip or don't tip. seems like a childish reaction to me. I get the logic of encouraging them to tip their drivers, but that's not the intended purpose.

if the pax was unreasonably rude, made a mess in your car, disrespectful towards you or another pax but tipped. would that justify a 5 star rating? that's telling that pax it's acceptable to treat other drivers in the same manner. maybe some drivers are willing to put up with that for a tip, and that's their call. but I'm not one of them. chances of the tip being enough to subject myself to such treatment would never be high enough doing uber/lyft. and we dont' get paid enough to put up with it. to each his own.


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## Sub Guy (Sep 22, 2016)

wk1102 said:


> How so?


That is like a pax saying to earn a 5 star rating a driver MUST:
-provide mints
- provide water
- provide the ability to charge your phone
- have an aux cable to allow you to play your music
- provide you cigarettes of your brand,
- be willing to wait while you score with your local dealer
- etc. etc. etc.

Not rating a PAX 5.0 because they don't tip (when they are told over and over that tipping is not allowed) sets an unrealistic standard that few would be able to meet. Just like few drivers are willing to meet the above "dream driver" list.


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## Cableguynoe (Feb 14, 2017)

I totally agree that we shouldn't hold it against pax that they don't tip. Many genuinely believe they're not supposed to. 
I had two women in my car once. One started going thru her purse looking for money. The other one told her that she's not supposed to tip. The funny part is she told her in a way like she was trying to stop her from embarrassing herself.


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## wk1102 (Dec 25, 2015)

Sub Guy said:


> That is like a pax saying to earn a 5 star rating a driver MUST:
> -provide mints
> - provide water
> - provide the ability to charge your phone
> ...


They were never tild tipping isn't allowed! They were lied to and told it was included and then told tipping isnt necessary. I used to be against rating lower for not tipping... know what that got me? Lots of 4.90 and 5.0 drive tbru requests...

For the last year and a half some publication or news show talks abput tipping and uber. They know its allowed.


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## Cableguynoe (Feb 14, 2017)

wk1102 said:


> For the last year and a half some publication or news show talks abput tipping and uber. They know its allowed.


Not everyone follows uber news the way we do


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## wk1102 (Dec 25, 2015)

Cableguynoe said:


> The funny part is she told her in a way like she was trying to stop her from embarrassing herself.


It was probably more shock and worry that she'd start a bad precedent


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## K-pax (Oct 29, 2016)

I often have people give me $1-$3 on minimum fares for giving good service. A % on a $4 fare would be lower. Leave as it is.


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## Watup (Jan 24, 2017)

$1 a ride avrg tip ?????? Who is gtn that and whr is Lyft gtn tht data from?? I drive in Chicago 2016 suv withh 4.97 rating and been driving fr abt year now and i wish i was gtn $1 a ride , peak hrs no tip , line no tip , majority of locals don't tip , South sider absolutely don't tip at all lol. Tip option is waaaay over rated by lyft .


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## Maven (Feb 9, 2017)

K-pax said:


> I often have people give me $1-$3 on minimum fares for giving good service. A % on a $4 fare would be lower. Leave as it is.


What if BOTH options offered? <$1, $2, %5, $10, $20, more> if fare under $10 or <5%, 10% 15%, 20%, more> if fare over $10?


Watup said:


> $1 a ride avrg tip ?????? Who is gtn that and whr is Lyft gtn tht data from?? I drive in Chicago 2016 suv withh 4.97 rating and been driving fr abt year now and i wish i was gtn $1 a ride , peak hrs no tip , line no tip , majority of locals don't tip , South sider absolutely don't tip at all lol. Tip option is waaaay over rated by lyft .


"$1 a ride avrg tip" not coming from Lyft, but drivers like yourself. See https://uberpeople.net/threads/actual-in-app-tips-recieved.159389/
Lyft's policies are almost identical to Uber's. They exaggerate every difference like tipping for marketing. However, Lyft's biggest successes have resulted from Uber constantly shooting itself in the foot.


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## LVC (Jun 28, 2016)

Glad that Lyft does have in app tipping. We use Lyft when traveling on business, use the corporate business card to charge the Lyft fees to. Leave a tip in the app and the charges go on the company card.


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## Watup (Jan 24, 2017)

Maven said:


> What if BOTH options offered? <$1, $2, %5, $10, $20, more> if fare under $10 or <5%, 10% 15%, 20%, more> if fare over $10?
> 
> "$1 a ride avrg tip" not coming from Lyft, but drivers like yourself. See https://uberpeople.net/threads/actual-in-app-tips-recieved.159389/
> Lyft's policies are almost identical to Uber's. They exaggerate every difference like tipping for marketing. However, Lyft's biggest successes have resulted from Uber constantly shooting itself in the foot.


Lmao , 9 people voted.


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## Maven (Feb 9, 2017)

Watup said:


> Lmao , 9 people voted.


41 votes last time that I looked  Not sure where you got "9".


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## Tnasty (Mar 23, 2016)

They got rid of tiiping when they introduced lyft line!


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