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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

#81

Post by maxerickson »

EC1 wrote: post #80
maxerickson wrote: post #73

Earlier quoted context omitted.

In the specific instance of sit down restaurants, we tip because that is how the transaction is structured. Do you think if restaurants had to pay their staff 4 times as much (minimum wage for servers is often ~$3 per hour but they probably take home closer to $10 or more) that the prices on the menu would stay the same? Do you see how that makes Do we tip because the food service industry cannot meet demands to pay…

I'd rather the burden of staff being paid be shifted to the employer and made up in the difference in cost of food. I'm from Canada where our minimum wage is quite decent, $10.50.

Yes, that's fine. My argument was quite clear, that you should not abuse the existing situation. I was even geographically specific.

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

#82

Post by andykellr »

I was shocked when I saw these defaults on recent trips to NYC. I lived there before these machines and 15-20% has always been the standard--less if the driver was rude, reckless, or deliberately slow--but almost never more than 20%.

Including the surcharge is fine because it's part of the fare, but including tax and tolls is unreasonable.

I typically choose 20% or Other. Now I will be sure to check the software as well.

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

#83

Post by UrMomReadsHN »

madeofpalk wrote: post #28
infinotize wrote: post #22

I thought this was a pretty blatant cheap trick the first time I saw it (similar to restaurants putting tip calculations on bills from 18-25% (which are usually post-tax no less!!)) and on the occasion I am in a cab always punch in "Other," or best option pay cash. Automatic deduction for cabbies who often tip themselves and hand you less change without asking - give me my change in full and I'll tip you, thanks. To…

> 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…

>I find it very amusing that you would tip a server who was noticably rude.

Yes, it is an absurd system. Basically, employers offload the responsibility of paying their employees on customers. So a tip is not a tip, it is an expected surcharge. Sure you can not tip, but its incredibly socially unacceptable. Furthermore, most people leave the same tip no matter what. Even if you had an exceptionally good or bad server, many places pool tips anyways.

When I was about 15 my friends and I accidentally forgot to leave a tip for the waitress. It was truly an accident. She followed us outside and to our car asking us for her tip. We got her to go back inside and then ran away because we weren't going to give her money after that...

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

#84

Post by thezilch »

acjohnson55 wrote: post #79
EC1 wrote: post #50

Earlier quoted context omitted.

I guess my struggle is internal then. I feel crappy about myself for being weak for tipping because I feel like I'm being scammed out of my own money via guilt given to me by their employer. And then I feel crappy if I don't tip.

You should feel crappy if you don't tip. It's an "honor system" but the wages assume that people tip servers. I know, it's absurd, but that's the system. If you don't want to tip, please don't eat at places where waitstaff are paid a wage that presumes tips.

And what places are those? And how much?

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

#85

Post by otoburb »

mod wrote: post #70
meowface wrote: post #32

Earlier quoted context omitted.

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 abl…

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

Were you able to figure out why?

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

#86

Post by nickstefan12 »

I just ran into this last night: I took a cab home from the airport. One: he had no gps and took a wrong freeway change getting home. Two he barely spoke English. Three I basically had to navigate him back on track and painfully turn by turn.

End of the trip I go pay, and he's sad that I want to pay with a credit card. Then the tip meter only has 20% or other. I hit other with a much lower tip. He cancels the transaction from the front, and says that the ride is actually 150 not 100, and that's why I need to tip. So I say fine and end up tipping him the 20% at 100.

But seriously isn't a tip like a bonus!? Why are we all required to give 20% tips even when the service sucks?

Next time I'll just uber.

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

#87

Post by darkarmani »

bunderbunder wrote: post #34
madeofpalk wrote: post #28

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…

> 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.

That's only if the tips don't make up the difference to get to minimum wage.

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

#88

Post by [deleted] »

frandroid wrote: post #53
EC1 wrote: 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.

Because you would not eat there if the employer paid decent wages and passed it on to you by charging 30% more than the "tipping" restaurant next door. The only way to get around this is to mandate higher minimum wages for hospitality workers, putting every restaurant on a level playing field. This is what they do in Australia and many European countries.

[deleted]

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

#89

Post by ENGNR »

crmd wrote: post #45
EC1 wrote: 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.

The theory is to incentivize awesome service by having each customer decide how much compensation to give based on the server's performance. Those who delight customers make more money, while whose who are bad at customer service make little money and are incentivized to leave the industry and do something not customer-facing.

How hard is it to bring someone a menu and then bring them the food they ask for?

I don't want to be delighted by the service, I'm there for the food and people I'm there with.

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

#90

Post by user58909 »

maxerickson wrote: post #73
EC1 wrote: post #65

Earlier quoted context omitted.

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 abou…

In the specific instance of sit down restaurants, we tip because that is how the transaction is structured. Do you think if restaurants had to pay their staff 4 times as much (minimum wage for servers is often ~$3 per hour but they probably take home closer to $10 or more) that the prices on the menu would stay the same? Do you see how that makes Do we tip because the food service industry cannot meet demands to pay…

I don't have to guess, I know the prices won't be that different. Not everyone knows it, but in WA state everyone including tipped employees must get the same minimum wage of over $9 an hour (to be increased to $15 in Seattle over the next several years). So the argument about underpayed workers doesn't hold any ground here, but people are still expected to tip.
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