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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

#2
I find tipping culture really confusing. How is it that when your plumber saves the day and gets your leak fixed (saving you expensive flood restoration costs) you pay the price on the invoice, yet for a car ride from A to B it's worth paying 20% to 30% over the invoice price? Compare that to buying a new vehicle where, regardless of how knowledgeable and spectacular the salesperson is, you are considered to be getting a bad deal if you don't bargain to below invoice price.

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

#3
Some great tips here for budding data scientists:

* Form a hypothesis before you start looking at data, else you're susceptible to post-rationalization.

* When in doubt, have the raw data available to reconcile with aggregate data.

* When publishing results, include your data sources, so that others can verify your findings.

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

#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 unaffordable.

Still cheaper than London's insane taxi fares however.

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

#5

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…

The table of example fares only includes trips with tolls, which are going to have higher totals, even without the toll.

The fare for people jumping around Manhattan would be quite a bit cheaper on average.

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

#7
post #2

I find tipping culture really confusing. How is it that when your plumber saves the day and gets your leak fixed (saving you expensive flood restoration costs) you pay the price on the invoice, yet for a car ride from A to B it's worth paying 20% to 30% over the invoice price? Compare that to buying a new vehicle where, regardless of how knowledgeable and spectacular the salesperson is, you are considered to be getti…

In the US particularly, tipping is basically just making up for the fact that the person is underpaid. Plumbers are typically very well rewarded for the work they do - restaurant waiters, less so.

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

#8

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…

> Is a 20% tip the norm for cabs?

Not historically. It used to be 10% or 15%. But then they put a screen in the back of the cab whose software says, "How much would you like to tip? [20%] [25%] [30%]" and then in a less enticing spot, "[Other]".

The power of evil, manipulative UI design is being used to make riders think that 25% is the typical taxi tip, and in a short amount of time, they'll have managed to use this fake-it-till-ya-make-it strategy to turn that lie into the truth.

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

#9

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.

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

#10
post #2

I find tipping culture really confusing. How is it that when your plumber saves the day and gets your leak fixed (saving you expensive flood restoration costs) you pay the price on the invoice, yet for a car ride from A to B it's worth paying 20% to 30% over the invoice price? Compare that to buying a new vehicle where, regardless of how knowledgeable and spectacular the salesperson is, you are considered to be getti…

Specifically with regard to vehicle sales, dealerships absolutely do not pay invoice price. Between dealer cash, customer cash, holdbacks and other financial things, it is all but a made up number.
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