For something that is supposed to be friction free, tipping really runs against that. We all know that next there are going to be the subtle and not-so subtle encouragements from drivers to tip. Then the expectation to tip. This move seems to only confuse me as a consumer, create something else for drivers to be annoyed about (the tips they receive vs what uber claimed they'll see), and adding an additional cognitive…
That already happened, with passive-aggressive comments about how you can tip in cash.
> I don't see the lasting benefit here. Just increase prices or increase driver share of payout.
There's a clear perceived benefit to Uber: PR with drivers, perceived improvement as a company (as opposed to having to fix hard corporate-culture issues), and the ability to keep the "advertised" price lower. (Of course, they're missing that they've now abandoned one of their major differentiators from their lead competitor.)
But there's certainly no lasting benefit to customers. Tips should be for extraordinary, stand-out service, not a customary hassle in every transaction.