# Lyft $100 million in tips! Uber "gross"



## BurgerTiime (Jun 22, 2015)

Not cool Uber, not cool


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## steveK2016 (Jul 31, 2016)

And so lyft overcharged their customers, compared to Uber rates, by over $100,000,000 and lyft doesnt see a penny of it.

Thays why Uber wont ever include a tipping option. Theyre happy lyft does, because at the end of the day, it makes lyft seem more expensive than Uber. Thats a win for Uber....


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## nickd8775 (Jul 12, 2015)

The passengers choose to tip. Uber passengers also tip but Uber doesn't know how much


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## u-Boat (Jan 4, 2016)

steveK2016 said:


> And so lyft overcharged their customers, compared to Uber rates, by over $100,000,000 and lyft doesnt see a penny of it.
> 
> Thays why Uber wont ever include a tipping option. Theyre happy lyft does, because at the end of the day, it makes lyft seem more expensive than Uber. Thats a win for Uber....


Lyft didn't "overcharge" their customers. No one put a gun to their head and forced them to leave a tip against their will. They simply allowed passengers an efficient option to reward drivers for extraordinary service. 
That's a win for Lyft...


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## steveK2016 (Jul 31, 2016)

u-Boat said:


> Lyft didn't "overcharge" their customers. No one put a gun to their head and forced them to leave a tip against their will. They simply allowed passengers an efficient option to reward drivers for extraordinary service.
> That's a win for Lyft...


I'm not saying so in a literal term.

It's all about perception. Perception is reality as they say.

And this reality is, if you tip regularly in the Lyft app but don't (can't) in the Uber app, when you compare your expenses between the two, Lyft will look more expensive compared to Uber for the same start and end point.

That's the point and that is why Uber won't include a tipping option. Whether the same Rider would tip the same amount to their Uber driver is irrelevant because they'll lose track of those expenditures since they have to do so in cash. At the end of the day, when comparing expenses within the statements themselves, Lyft will look more expensive than Uber. That's a win for Uber and they will not give up that advantage against their competition...


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## u-Boat (Jan 4, 2016)

steveK2016 said:


> I'm not saying so in a literal term.
> 
> It's all about perception. Perception is reality as they say.
> 
> ...


I think majority opinion "perceives" uBer's tipping policy as foolish and misguided. Catering to their own bottom line while exercising blatant disregard for their so called "partners" is unethical and bad for business.


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## ChortlingCrison (Mar 30, 2016)

I don't perceive uber's non-tipping policy as foolish. I know it's foolish.


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## steveK2016 (Jul 31, 2016)

u-Boat said:


> I think majority opinion "perceives" uBer's tipping policy as foolish and misguided. Catering to their own bottom line while exercising blatant disregard for their so called "partners" is unethical and bad for business.


I think you give people too much credit.

It's a matter of black and white perception, printed within individual's financial statements. The trip they took from Point A to Point B with Lyft that costs $20 with a $5 tip will look like $25. The same trip with Uber will show as $20.

When you start tallying your expenses, most people will look at Lyft as more expensive, even if they do tip cash with Uber. The fact that the tip is trackable through expenses for an easy side by side comparison makes Lyft appear more expensive.

That appearance gives Uber an edge in the long run.

It doesn't matter what you or I think is foolish. It's a simple business decision. Lyft will appear more expensive due to this without getting any financial benefit outside of cash flow. $100,000,000 on the books, even if rotating out as payouts to their drivers keeping none of it, may be helpful for cash flow... but as a Marketing strategy, Uber benefits from not having tipping in their app.

Trust me, I'm all for tipping in the app but I also understand how company's make business decisions based on marketing perspective...


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