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Uber and Lyft drivers in the US are getting tips for rides only 28% of the time, according to a study by gig worker tech company Gridwise. And that may help explain the reason why thousands of gig workers struck Less pay on Valentine’s Day,
data from grid wiseFirst reported by business Insider Thursday provides an interesting look at how Americans feel about tipping. Anecdotally, reports indicate that American consumers suffer from extreme tipping fatigue, even on apps they have previously tipped while using the same service.
As far as attitudes go, about 56% of Americans believe tipping 10% or less is enough for rideshare drivers, while only 8% of rideshare users believe in tipping more than 20%. According to Gridwise, about 8% of Americans don’t believe in tipping their Uber and Lyft drivers at all.
Interestingly, food delivery was a category where consumers were more willing to tip, with 88% of food delivery trips receiving a tip. Grocery deliveries through apps were less tipped than takeout food, with about 74% of all deliveries receiving a tip. But the 28% tips for Uber and Lyft will likely come as a surprise to those who consistently tip on rideshares, considering that tips are a significant portion of income for anyone working in the service economy.
According to Gridwise, rideshare drivers for companies like Lyft and Uber saw an 8% decline in gross hourly earnings last year, with estimated earnings after expenses hovering around $20 an hour. Uber claims drivers are earning about $33 per hour, although this figure does not take into account expenses.
“I don’t remember how hard it would have been to make money on apps.” Eduardo Romero, a rideshare driver, said in a statement In the lead up to the Valentine’s Day strike. “I have to work ten hours a day to make as much money as I could in six hours, and yet I still don’t make enough.”
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