Tips vs. Fares: which is better?
Tips are not subject to Uber taxes.
Tips are valuable feedback from passengers.
Tips are the best way to maximize profit.
Sometimes I debate whether it is better to focus my efforts on tips or fares. While both are important to making money, trying to get a tip instead of beating Uber's algorithm has some clear advantages. First, Uber takes the first cut of every fare, so we drivers only receive a portion of the money paid by the passenger. However, tips are given directly to the driver and are not subject to Uber taxes. In addition, passengers often leave tips when they have had a good experience, which provides Uber drivers with valuable feedback. Finally, Uber drivers who receive good tips are more likely to be given five-star ratings, leading to more passengers and higher earnings. For all these reasons, and probably others I haven't thought of, it is clear that working on getting a tip is better than stressing about the fare.
What are your thoughts on the importance of tips?
Should Uber drivers focus more on tips or fares?
What is your favorite way to receive tips from passengers?
Are there any passenger types that type better than others?
Do you think riders value good service more when they know the driver relies on tips for income?