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How Software in Half of NYC Cabs Generates $5.2M a Year in Extra Tips

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Re: How Software in Half of NYC Cabs Generates $5.2M a Year in Extra Tips

#61

Earlier quoted context omitted.

> less than 15% requires the server to be noticably rude or inattentive. As an Australian, in a country that doesn't have a culture of tipping, I find it very amusing that you would tip a server who was noticably rude. Edit: For context as well, tipping is on the rise up in Australia, but only at classier/fancier/modern/hipster places, and the extent of a tip would be to round up to nearest $10 (or note, if paying ca…

Tipping in the USA goes something beyond just being culture. We've even got it ingrained into our laws. Minimum wage for servers is barely nominal, and much less than what anyone else in the restaurant is making. It's expected that customer tips will form the bulk of their earnings. So if you believe that people deserve to be paid a living wage for their time even when they're not at their best, the status quo places…

Anyone remember this?

https://www.youtube.com/watch?v=0fJCjet2e3U

Re: How Software in Half of NYC Cabs Generates $5.2M a Year in Extra Tips

#62

There is a lot of talk about how people who get tips generally get a very low wage to start and if they don't get good tips they make a lot less. The federal minimum wage is $7.25 per hour (effective July 24, 2009).[1] Furthermore, the federal government requires a wage of at least $2.13 per hour be paid to employees that receive at least $30 per month in tips. If wages and tips do not equal the federal minimum wage…

Is minimum wage a living wage?

$7.25 * 44 hours per week * 51 weeks per year is still only 15,950 US$

That's gross, not net.

I'm not convinced that people would pay extra even if they didn't have to tip to a company that paid a living wage but charged more.

Re: How Software in Half of NYC Cabs Generates $5.2M a Year in Extra Tips

#63
post #38

Earlier quoted context omitted.

I can't wrap my head around tipping. Why do I have to pay extra? Why doesn't their employer pay them. Can someone explain tipping to me? Because apparently I'm the worst person on the planet for not tipping.

If you walk into a sit down restaurant in the US with a plan not to tip, you are being pretty obnoxious. It's not complicated, tips in that situation aren't extra, they are part of the compensation of the entire staff of the restaurant (the waiters usually tip the bussers and the kitchen...). If you don't like the arrangement, you should refrain from eating in such places.

> It's not complicated

It _is_ complicated. It's so complicated that (i) there are discussions on the internet about whether 15% or 20% or 25% is fair, and (ii) there are many specialised 'tip calculator' apps.

When I walk into a restaurant, how much should I be expecting to pay for 'meets expectation' service? Is this a % of the bill, or a $ amount related to the amount of time I'm being served (a proxy for the amount of service I get)? Whatever your answer, are you confident that most other patrons of said restaurant would agree with your recommendation?

Re: How Software in Half of NYC Cabs Generates $5.2M a Year in Extra Tips

#64

Earlier quoted context omitted.

Consumers pay 100% of the incomes of a restaurant's employees.

Well not directly. Why, as a consumer, am I making a decision on how much the staff will earn that day. That's the employer's responsibility. Why doesn't the restaurant owner set the price of what they sell accordingly to cover all costs (incl. wages)? In Australia, the price I see on the menu is the price I'm charged and the price I pay. That includes wages!

[deleted]

Re: How Software in Half of NYC Cabs Generates $5.2M a Year in Extra Tips

#65
post #38

Earlier quoted context omitted.

I can't wrap my head around tipping. Why do I have to pay extra? Why doesn't their employer pay them. Can someone explain tipping to me? Because apparently I'm the worst person on the planet for not tipping.

If you walk into a sit down restaurant in the US with a plan not to tip, you are being pretty obnoxious. It's not complicated, tips in that situation aren't extra, they are part of the compensation of the entire staff of the restaurant (the waiters usually tip the bussers and the kitchen...). If you don't like the arrangement, you should refrain from eating in such places.

It's complicated because its so ingrained in our society yet its completely unenforced except only by at most intense personal judgement.

Do we tip because the food service industry cannot meet demands to pay all staff at least minimum wage?

Is it because minimum wage nationally is too low and people feel the need to fill in that missing %?

Why would I tip a waiter and not a customer service representative?

What about a cashier?

What criteria do you use to determine who you tip?

One guy above mentioned he tips all sorts of people and it seems like the underlying reason is because they provide a service. Everybody provides a service, do you tip everybody?

If the bottom line for tipping is that you provide a service, it seems to be a binary situation doesn't it? You either tip everybody or you tip nobody.

It's such a completely arbitrary social contract. Maybe I'm reaching too much into this. Maybe I'm just autistic, who knows.

Re: How Software in Half of NYC Cabs Generates $5.2M a Year in Extra Tips

#66

There is a lot of talk about how people who get tips generally get a very low wage to start and if they don't get good tips they make a lot less. The federal minimum wage is $7.25 per hour (effective July 24, 2009).[1] Furthermore, the federal government requires a wage of at least $2.13 per hour be paid to employees that receive at least $30 per month in tips. If wages and tips do not equal the federal minimum wage…

The problem is that it creates a system that is easy to abuse, by the employer.

Re: How Software in Half of NYC Cabs Generates $5.2M a Year in Extra Tips

#67

There is a lot of talk about how people who get tips generally get a very low wage to start and if they don't get good tips they make a lot less. The federal minimum wage is $7.25 per hour (effective July 24, 2009).[1] Furthermore, the federal government requires a wage of at least $2.13 per hour be paid to employees that receive at least $30 per month in tips. If wages and tips do not equal the federal minimum wage…

They do "live off tips" though. They take the job with the expectation of making more than minimum wage.

Re: How Software in Half of NYC Cabs Generates $5.2M a Year in Extra Tips

#68

Earlier quoted context omitted.

Tipping in the USA goes something beyond just being culture. We've even got it ingrained into our laws. Minimum wage for servers is barely nominal, and much less than what anyone else in the restaurant is making. It's expected that customer tips will form the bulk of their earnings. So if you believe that people deserve to be paid a living wage for their time even when they're not at their best, the status quo places…

The circular reasoning is what gets me - they get less than minimal wage because they earn tips because they get a poor wage because they earn tips because...

It's a ratchet.

Re: How Software in Half of NYC Cabs Generates $5.2M a Year in Extra Tips

#69
post #64

Earlier quoted context omitted.

Well not directly. Why, as a consumer, am I making a decision on how much the staff will earn that day. That's the employer's responsibility. Why doesn't the restaurant owner set the price of what they sell accordingly to cover all costs (incl. wages)? In Australia, the price I see on the menu is the price I'm charged and the price I pay. That includes wages!

[deleted]

So every job where you deal with people should resort to this method of payment? Sure, that is a great idea. I look forward to tipping my supermarket clerk, the post office guy, the delivery guy, the bus driver.

Japan has the right idea.

Re: How Software in Half of NYC Cabs Generates $5.2M a Year in Extra Tips

#70

Earlier quoted context omitted.

> less than 15% requires the server to be noticably rude or inattentive. As an Australian, in a country that doesn't have a culture of tipping, I find it very amusing that you would tip a server who was noticably rude. Edit: For context as well, tipping is on the rise up in Australia, but only at classier/fancier/modern/hipster places, and the extent of a tip would be to round up to nearest $10 (or note, if paying ca…

Waiters in the US make an average of $4.63 and median of $4.00 per hour [1] from their employer in wages. They make the rest of their income in tips. If you don't tip, you're potentially taking a not insignificant chunk out of their pay for the day. In the US, it takes fairly extreme circumstances to not tip (by most people's standards at least; some people just never tip, but they're a tiny group), like if the servi…

>> some people just never tip, but they're a tiny group

In my experience, they're not tiny. I'm a young male who owned and worked in my own bar in a poor area of the bible belt, so there's those caveats--but I averaged about 8% in tips over 2.5 years.

My niece, on the other hand, averages over 20%.

My service was in all likelihood better than hers--at the time, we had fewer customers and therefore I was literally able to do more. Further, I'm well-liked by my customer base, and by my own measure I was an excellent bartender.

Anyway, I had a very large amount of customers who did not tip. I'd say > 30%.

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