So we know that all things IT service is changing. For example, five years ago, Uber comes out. But today, Uber and Lyft drivers make millions in tips.
Last year, the ride sharing app started an in-app tipping service. It paid off…in every sense of the word. They introduced the tipping program in May 2017. Since then, drivers saw a 30% increase in their bottom line. In fact, in August 2017 alone, Uber drivers made $50 million in tips. They’re not the only ones. Because their rival, Lyft, launched a tipping app service around the same time. They saw their drivers make over $500 million in tips since then. That’s nearly a 10% increase.
They even broke it down to cities and times. Uber says their most generous tippers are in Salt Lake City, Kansas City, New Orleans and Nashville. However, Lyft says their most generous tippers are in New York City, Atlanta, Dallas, and San Jose, CA. Not surprisingly, ride sharing customers get really generous close to weekend time. Drivers get the biggest tips between Thursday night and Saturday night. Keep in mind these stats are just in the USA. Yes, Uber is available now in most of the world. But Lyft is only available in the US and Canada.
One thing that surprises me. Boston isn’t on the most generous tippers’ list. People use it in this town often enough. I see them come and go in front of this computer service shop all the time. But I’m not surprised the people are more generous on the weekend. People have tendency to spend more money late week and weekend then during the week. Also, people are more generous when they’re in celebratory mode. This is a huge step for Uber and Lyft drivers. This isn’t good for cab companies, who are already hemorrhaging because of Uber and Lyft. Can they come back and compete with this?