I've been taking a lot of Ubers recently. The company has now expanded into Edinburgh, and, given that the cars turn up quickly and I don't need any cash to get into them, the whole thing works very nicely for me.
However in the course of chatting to a few drivers the subject of tips has come up. Because the cost of the trip goes straight to a credit card with no cash changing hands, Uber drivers never get tips on top of the basic fare. That makes sense to me. I've always hated the tipping culture a world in which the price is the price seems to me to be a better (and more respectful) one than a world in which the price changes dependent on the mood of the customer. But there is a problem with this.
What happens when an Uber driver really does perform an out of the ordinary service that doesn't fit into the company's charging structure? Two drivers have recently told me about going far out of their way to return phones/wallets to people who have left them in their cabs. They haven't been paid for this (no one has called a cab so it doesn't go into the system), but when they have handed over the stuff, they haven't been tipped either. By coincidence both drivers had also previously been black cab drivers, so both had plenty of experience with returning left behind items in that role. Then, they both said, the meter didn't run when they drove to return the items but they were always generously tipped by the recipient. So why the difference?
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Writing in the FT today, Izabella Kaminska suggests that the way in which the gig economy works "dehumanises the transaction" to the extent that tipping people doesn't make sense any more. I rather suspect it might be entirely the opposite.
The rating system that Uber uses, along with the fact that no cash changes hands, seems to me to completely humanise the transaction in that it equalises the parties on each side of it. And once that is done, tipping seems wrong.
The gig economy when it comes to Uber at least doesn't stop tipping because it dehumanises the service provider, it stops it because it equalises them with the customer. And people don't tend to tip people they perceive as equals.
I can't answer the question of whether this is all good or bad at the moment (bad financially for Uber drivers, good for society?) But it does raise some interesting social questions about how going cashless will change the way we interact with each other.
-
Private school fees soar and VAT threat looms – what does it mean for you?Rising private school fees could see more than one in five parents pull their children out of their current school. Before you remortgage, move house or look to grandparents for help, here’s what you need to know.
-
Best and worst UK banks for online banking revealedWhen it comes to keeping your money safe, not all banks are equal. We reveal the best and worst banks for online banking when it comes to protecting your money from scams
-
Beating inflation takes more luck than skill – but are we about to get lucky?Opinion The US Federal Reserve managed to beat inflation in the 1980s. But much of that was down to pure luck. Thankfully, says Merryn Somerset Webb, the Bank of England may be about to get lucky.
-
Rishi Sunak can’t fix all our problems – so why try?Opinion Rishi Sunak’s Spring Statement is an attempt to plaster over problems the chancellor can’t fix. So should he even bother trying, asks Merryn Somerset Webb?
-
Young people are becoming a scarce resource – we should value them more highlyOpinion In the last two years adults have been bizarrely unkind to children and young people. That doesn’t bode well for the future, says Merryn Somerset Webb.
-
Ask for a pay rise – everyone else isOpinion As inflation bites and the labour market remains tight, many of the nation's employees are asking for a pay rise. Merryn Somerset Webb explains why you should do that too.
-
Why central banks should stick to controlling inflationOpinion The world’s central bankers are stepping out of their traditional roles and becoming much more political. That’s a mistake, says Merryn Somerset Webb.
-
How St Ives became St Tropez as the recovery drives prices sky highOpinion Merryn Somerset Webb finds herself at the epicentre of Britain’s V-shaped recovery as pent-up demand flows straight into Cornwall’s restaurants and beaches.
-
The real problem of Universal Basic Income (UBI)Merryn's Blog April employment numbers showed 75 per cent fewer people in the US returned to employment compared to expectations. Merryn Somerset-Webb explains how excessive government support is causing a shortage of labour.
-
Why an ageing population is not necessarily the disaster many people think it isOpinion We’ve got used to the idea that an ageing population is a bad thing. But that’s not necessarily true, says Merryn Somerset Webb.
