7 Uber and Lyft drivers on how they maximize earnings in a tip-averse culture
As Uber and Lyft drivers see fewer tips, some share their strategies for winning over customers.
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- Uber and Lyft drivers are struggling with inconsistent tipping.
- Americans were less likely to tip rideshare drivers in 2024 than drivers for platforms like Grubhub.
- Drivers are trying new strategies, while others say it's not worth the effort.
Jay Keleher said his Uber passengers don't tip as often as they did a few years ago. To combat that, he'll try to win them over with a joke.
"If you can make someone laugh within the first 30 seconds, it's going to be a good trip, and you're going to have a good tip," the 42-year-old told Business Insider.
But strategies like this have only helped so much. Keleher's tip rate — the amount he received in tips relative to his base earnings from trips — is 11.6% this year, according to screenshots from 10 weeks between January and March provided to BI. Per Keleher's calculations, his tips as a share of his total earnings have dipped from about 17% over the last four months of 2024.
Keleher isn't the only driver struggling to land tips. Drivers, riders, and gig economy experts told BI that tipping customs for rideshare drivers, rising fares, and inconsistent driver service could be contributing to lower tips. However, while many drivers are testing new strategies to increase the frequency of receiving tips, others have given up — some said the efforts rarely paid off.
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Data provided to Business Insider by Gridwise, a data analytics company that helps gig drivers track their earnings, showed that Americans were much less likely to tip their Uber and Lyft drivers last year than drivers for platforms such as DoorDash, Grubhub Instacart, and UberEats. Gridwise analyzed 171 million trips to compile its findings.
"While tipping culture in restaurants is fairly well-established in the United States at this point, it's still evolving when it comes to rideshares, and many riders may not understand the financial realities of rideshare driving," Nick Leighton, co-host of the manners and etiquette podcast "Were You Raised By Wolves," told BI in June. "This may explain why there's so much inconsistency currently in when or how much riders choose to tip."
Uber told BI that its drivers and couriers collectively earned $20 billion, including tips, in the fourth quarter of last year — a 16% increase from the same period the year prior. Lyft pointed BI to statements made by CEO David Risher in the company's latest earnings call, in which he said drivers collectively earned nearly $9 billion in 2024, more than any other year.
Seven ride-hailing drivers shared what strategies have helped them land tips and why sometimes providing good service is not worth the effort.
How drivers try to win over customers and get tips
Christina, an Uber and Lyft driver in Las Vegas, said about half of her passengers tip on a good day. She feels tipping is inconsistent and that sometimes her efforts to please customers go unnoticed.
"The last few months have been hard," said Christina, whose identity was verified by BI but who asked to use her first name for fear of professional repercussions. "The pay from Lyft and Uber has been not enough to cover gas at times. It's made me look at alternatives."
She keeps a clean car, has a bubbly personality, and tries to connect with passengers by asking questions. But she's not always talkative: When she looks in the mirror and sees a passenger on their phone, she takes that as a cue to stay quiet.
"I think when a customer feels closer to you as a person — that they could see themselves in the position of the driver — then they are more likely to tip," Christina told BI in June. "However that still doesn't guarantee a tip because I've had fantastic rides and conversations, and they give me a compliment but no money."
When her mother was dying a few years ago, Christina sometimes mentioned it in conversation, which drove up tips. Still, she has to fight for tips. Some riders have told her they don't know how to tip, forcing her to show them on the app. Some international passengers don't tip because they don't understand tipping culture, she said.
Being helpful to tourists has been an effective strategy for Marilyn Cassidy, an Uber and Lyft driver in Myrtle Beach, South Carolina. She drives a few days a week to supplement her Social Security income and gets tips for nearly 50% of her rides, she told BI in June. Cassidy said female passengers are often relieved to have a female driver and tip more. Still, she acknowledges there's only so much she can do. Sometimes, the app's navigation falters, she said, which can delay some rides and result in lower tips.
"There are some days when I don't see any tips at all," Cassidy told BI in June.
Some drivers like Jillian, 67, who is based in Santa Clarita, California, have a simple solution for getting more tips — before riders exit her car, she asks them nicely if they could leave a tip.
However, it's not a perfect strategy. She told BI that tipping continues to be unpredictable.
In addition to telling jokes, Keleher said he tends to avoid accepting ride requests for passengers who have below a 4.7 rating, in part because he thinks they'll be less likely to tip. He said drivers rate passengers before knowing whether they receive a tip — so tipping isn't incorporated in the rating — but he still thinks a highly-rated passenger will generally be more likely to tip.
Some drivers have given up
Alex Santiago, an Uber driver in northern Virginia, used to dress business casual and catered music to passengers. But after years of inconsistent tips, he stopped trying so hard.
Some days, he drives with slippers on. Other days, he listens to podcasts he wants to hear. After making these changes, he said he hasn't seen tips decline.
"I'm not providing amenities such as water and games — I don't run a day care, I drive a car," Santiago, who's in his late 40s, told BI in June.
Jason S. told BI in June that the frequency and quantity of tips he's received fell during the pandemic. Between a third to half of riders tipped him pre-pandemic, but last year he was lucky if it was one in six, he said. He suspects increasing rates for riders has reduced tips, as he hasn't changed his driving habits.
"I used to look at tips as extra, now I desperately need those tips to keep my hourly up," Jason, who's in his early 50s, told BI in June. "I used to be able to earn anywhere from $32 an hour up to as much as $55 an hour with good bonuses. Now, if I hit $25 an hour, it's a miracle."
He thinks there's nothing he can do differently to maximize tips. Those who tip likely always tip regardless of service, he said.
For some drivers, trying to get tips can backfire.
Andre Kingston said passengers sometimes reprimand her for trying too hard to get tips. The Detroit-based driver said she's received one-star reviews for "talking too much" or not being polite, even though she says she always greets people and asks them for their music selection.
Kingston, who's in her early 50s, told BI that tips are rarer and lower than last year. She suspects it's because of higher fare rates.
Low tipping levels prompted Jason D, a 50-year-old Uber and Lyft driver in Phoenix, to no longer provide the same level of service.
"I used to open doors for everyone and adjust the seats for everyone and offer whatever music request any passenger wanted and engaged in whatever conversation the passengers wanted to engage in," he told BI in June. "But I don't get tipped for it anymore, and I'm over it."
He said his new strategy is to not accept rides that pay him below $20, even though this has lowered his acceptance rate and made him ineligible for Uber's driver rewards program. He said receiving a customer's appreciation isn't as useful as a tip.
"I am not working for star ratings or appreciation," he said. "Those do not pay my bills."
This story was initially published on June 28, 2024, and was recently updated with additional interviews and data.