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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

#51

Post by pkaye »

hbosch wrote: post #9
Someone1234 wrote: post #4

Is a 20% tip the norm for cabs? I don't live in NY and don't take cabs often, but I would just assume tipping would be similar to eating out in the US (10% for bad service, 15% norm, and 20%+ for good service). Anyone care to weigh in? Also I always heard how "cheap" taking a taxi was in NYC. That's why people did it all the time. But looking at his example fares ($40+), that doesn't seem cheap to me, in fact quite u…

Within Manhattan, you can usually get where you're going for under $20 sans tip. When I lived there, I wouldn't necessarily call that "cheap" compared to the underground alternative... but definitely just cheap enough that, after a long day, I would raise my hand if I saw the light on instead of walking the next block to the subway.

But how often do people use cabs in Manhattan? If you used it say twice a weekday then that is like $10K a year on cabs alone!

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

#52

Post by maxerickson »

EC1 wrote: post #38
crmd wrote: post #25

Earlier quoted context omitted.

>I won't default to a high tip for average service just because other people are doing it. 30% and up is a high tip. 20% is not. Life is short. Be the guy/gal who puts smiles on strangers faces. You can do this by taking care of service staff.

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.

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

#53

Post by frandroid »

EC1 wrote: post #38
crmd wrote: post #25

Earlier quoted context omitted.

>I won't default to a high tip for average service just because other people are doing it. 30% and up is a high tip. 20% is not. Life is short. Be the guy/gal who puts smiles on strangers faces. You can do this by taking care of service staff.

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.

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

#54

Post by waterlesscloud »

madeofpalk wrote: post #41
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…

Yeah I mean I understand all of that, I just think it's crazy. As a consumer. Vox said it well with "consumers should not be responsible for paying the incomes of a restaurant owner's employees". I find it hilarious how much intelligent and smart people rationalise the US tipping culture. It's always justified as you need to tip because the staff are paid low because they make it up in tips. It's circular reasoning.

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

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

#55

Post by jack-r-abbit »

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 of $7.25 per hour during any pay period, the employer is required to increase cash wages to compensate.[2]

So while it may be true that servers might get a base pay of something stupid like $2.13, they are guaranteed that they will make at least the federal minimum wage (which still sucks but that is a different topic). And... many states go above and beyond what the federal government requires[3]. I'm getting a little tired of the whole "but they live off tips" rhetoric. Tip what you want and don't let society pressure you into tipping more than you desire. For me, since sales tax is hovering in the 9% level where I am, I usually just double that and adjust accordingly (based on service quality, etc). That also makes it easy to not tip based on the bill+tax amount that they give you on the "sub total" line.

[1] http://www.dol.gov/whd/minimumwage.htm [2] http://www.dol.gov/elaws/faq/esa/flsa/002.htm [3] http://www.dol.gov/whd/state/tipped.htm

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

#56

Post by ekanes »

girvo wrote: post #35
DanBC wrote: post #27

Earlier quoted context omitted.

> keeping the doors locked and asking where you are going before letting you in, which is illegal) Just out of interest: do you ever report those cabs?

Different country, I'm in Australia, but I've reported many cabs for breaking various rules (and laws) as well as being outright hostile. I have an intense dislike of our cab duopoly in Brisbane, but to both of the companies' credit, they appreciated the heads-up when it came to dangerous, rude or illegal drivers. I highly recommend others report cabbies who break the rules, as if we don't they will never improve.

This is a big reason that Uber and Lyft are a big deal - feedback systems are so ingrained that a bad driver won't last long.

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

#57

Post by madeofpalk »

waterlesscloud wrote: post #54
madeofpalk wrote: post #41

Earlier quoted context omitted.

Yeah I mean I understand all of that, I just think it's crazy. As a consumer. Vox said it well with "consumers should not be responsible for paying the incomes of a restaurant owner's employees". I find it hilarious how much intelligent and smart people rationalise the US tipping culture. It's always justified as you need to tip because the staff are paid low because they make it up in tips. It's circular reasoning.

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!

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

#59

Post by madeofpalk »

jack-r-abbit wrote: post #55

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…

> guaranteed that they will make at least the federal minimum wage

Guaranteed legally, and guaranteed in reality are two different things. If I pay someone to drive me somewhere, it's legally guaranteed that they're licensed driver by the government by the appropriate regulator. But in reality, UberX.

I would like to know how often employee's end up following this up with their employer, and how often the employer makes up their wage.

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

#60

Post by rahimnathwani »

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…

> the status quo places the onus to make sure that happens on you.

The onus is on the employer, not on the employer's customer. Implementation varies by state: http://www.dol.gov/whd/state/tipped.htm

Some states have a higher minimum cash wage (before tips) than the $2.13 mandated by federal law. e.g. in California this is $9 per hour.

In many places, the employer (restaurant) is responsible for topping up the employees' wages if wage+tip doesn't reach the state's normal minimum wage.

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