Uber Is Adding Tipping Option in App After Driver Unrest

After CEO Travis Kalanick has stepped aside, Uber is making big concessions to clean up its image and keep drivers from defecting, according to Bloomberg.

The most noteworthy addition is the ability for customers to tip their drivers inside the app. The company rolled out the option in Houston, Minneapolis and Seattle, with plans to expand to every U.S. city by the end of next month.

Along with tips, Uber said it would start compensating drivers for trips canceled more than two minutes after booking and offer new insurance plans. It also said drivers would get paid more to chauffeur teenage passengers.

The company is looking to appease drivers as it’s under pressure from a steady stream of scandals and slipping market share at home. They ramped up a program in recent months called Uber Listen, where it sends representatives to ride along with drivers and collect their feedback while paying them for the time.

One of the most frequent complaints from drivers was the lack of a tipping feature within the app, which has long been offered by Lyft, the primary U.S. alternative. The new policy, which is part of what Uber billed as “180 Days of Change,“ eliminates an important advantage for Uber’s smaller foe, said Harry Campbell, who runs the Rideshare Guy, a popular blog among drivers.

Offering tips is a major reversal for Uber, which had promoted the simplicity of paying without tipping. It had previously suggested that tips could be used to racially discriminate. Kalanick had been opposed to asking customers for tips, arguing that restaurants and taxi companies have used tips as an excuse to underpay workers. But Uber executives were weighing whether to bend to public pressure and allow tips.