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How often do Lyft and Uber customers tip their drivers? Maybe less than you think.
When it comes to having food delivered, Americans are accustomed to offering a gratuity. But it’s a different story for people whose job is delivering people to their destination.
Only some 28% of rideshare trips result in tips, according a recently released report by Gridwise Analytics, which operates an app that tracks earnings for 500,000 active rideshare and delivery drivers.
For nearly a decade, Uber didn’t enable users to tip, “and consumers have gotten used to not tipping for that type of service,” Ryan Green, CEO of Gridwise, told CBS MoneyWatch. “We saw some of the high fares, when it’s more than $1,000 but zero tip, and that’s for six hours of driving.”
Uber, the San Francisco-based ridesharing and delivery company, concurred with Green’s observation, noting that it began to facilitate tipping through its app after vocal lobbying by drivers.
By contrast, people who deliver restaurant orders and groceries are tipped roughly 88% and 74%, respectively, of the time, Gridwise found. Tips represent 51% of earnings for those delivering food and groceries, but just 10% for rideshare drivers.
Still, tipping has become more important for Lyft and Uber drivers with the rise in inflation; in 2023, monthly gross earnings for Uber drivers fell 17% from the previous year, according to Gridwise.
“We can see directly how their earnings have been constructed in a way to be compressed, when the prices of all goods — the cost of living — is substantially higher,” said Green of Valentine’s Day protests by drivers in some U.S. cities to protest reductions in pay. Labor groups representing gig drivers say the companies are taking a bigger bite of the fares.
“They are going to have to give up some of that piece they are taking,” Carlos Pelayo, 69, a substitute high school teacher in San Diego who supplements his income by driving for Uber and Lyft, told CBS MoneyWatch.
How much do rideshare drivers earn?
Typically, Lyft and Uber collect an average of roughly 40% of fares, Green said. Lyft earlier this month vowed that its drivers would receive at least 70% of fares.
Gross monthly earnings for an Uber driver averaged $1,409.71 in 2023, down from $1,699.58 the prior year, according to Gridwise data. On average, drivers for the company worker 56 hours month last year, down slightly from 58 hours in 2022. In 2023, the typical Lyft driver worked 44 hours a month, which amounted to earnings of 1,058.32.
Uber drivers earn a median of $33 an hour when driving a fare, including tips and bonuses, according to the company. Lyft drivers using their own vehicles grossed $30.68 (including tips and bonuses) per hour of engaged time, and after expenses earned $23.46, according to Lyft.
Uber Technologies this week said it would repurchase as much as $7 billion in shares after reporting its first full year as a profitable public company. The offering to investors followed a strong earnings report, with Lyft following suit with solid results this week.
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Sen. Bob Menendez “put his power up for sale,” prosecutors say in closing arguments of bribery trial
A prosecutor accused Sen. Bob Menendez in a closing argument at his bribery trial Monday of putting his power up for sale to benefit three New Jersey businessmen who allegedly bribed him with gold and cash.
The presentation by Assistant U.S. Attorney Paul Monteleoni, which will continue Tuesday, prompted the New Jersey Democrat to scoff as he left the courthouse, saying: “The government is intoxicated with their own rhetoric.”
Minutes earlier, Monteleoni urged the Manhattan federal court jury to follow a trail of hundreds of emails and text messages between the businessmen, Menendez and his wife to see the alleged link between the businessmen and stacks of cash, gold and a Mercedez-Benz convertible that investigators found in the couple’s home in June 2022.
He said they’ll also be able to match fingerprint evidence linking the businessmen and Menendez to the bribes, including fingerprints on the tape that bound thousands of dollars in cash hidden in coat pockets, boots and boxes inside the Englewood Cliffs, New Jersey, home owned by his wife, Nadine Menendez.
Jeenah Moon/Bloomberg via Getty Images
Monteleoni said the senator “put his power up for sale.”
The prosecutor said it wasn’t enough that the senator was one of the most powerful people in Washington as the ranking member and later the chairman of the Senate Foreign Relations Committee, where he could block or approve hundreds of millions of dollars in military aid to nations such as Egypt.
“He also wanted to use it to pile up riches for himself and his wife,” Monteleoni said.
Monteleoni’s closing as the trial enters its ninth week in Manhattan federal court was about half finished when court concluded for the day.
As he left the courthouse, Menendez mocked the prosecutor’s closing, saying the government had “spent two hours on charts, not witnesses that came before the jury.” He added that Monteleoni had spent “two hours telling jurors about what they believe conversations should be that they never heard.”
Monteleoni said there was a clear pattern of corruption and told jurors to closely review communications between the senator, his wife and the businessmen to see evidence of bribes along with proof that they were trying to cover up their schemes.
Monteleoni said defense claims that gold in the house had mostly been inherited by Nadine Menendez was belied by serial numbers on gold bars which showed they had come from the businessmen who paid bribes.
“All this talk about Nadine having family gold is a distraction,” he said.
In return for bribes, prosecutors say, the senator took actions from 2018 to 2022 to protect or enhance the business interests of the businessmen — including pressuring a U.S. Department of Agriculture official to protect a halal certification monopoly Egypt granted to a New Jersey businessman, Wael Hana, and attempting to influence a federal prosecution of another New Jersey businessman, Fred Daibes.
Michael M Santiago / Getty Images
Menendez, Hana and Daibes have pleaded not guilty and are on trial together. A third New Jersey businessman, Jose Uribe, pleaded guilty in the case and testified against the others during the federal trial, the second the senator has faced in the last decade. None of the defendants testified.
An earlier trial against Menendez in New Jersey ended in 2017 with a deadlocked jury. After the charges were lodged last fall, Menendez was forced to give up his powerful chairmanship of the Senate Foreign Relations Committee.
Nadine Menendez is also charged in the case, but her trial has been postponed until August while she recovers from breast cancer surgery. She also has pleaded not guilty.
As part of his defense, Menendez’s lawyers have argued that tens of thousands of dollars in cash found in the senator’s boots and jackets resulted from his habit of storing cash at home after hearing from his family how they escaped Cuba in 1951 with only the cash they had hidden in a grandfather clock.
His lawyers have also asserted that Nadine Menendez, who began dating the senator in 2018 and married him two years later, kept him in the dark about her financial troubles and assistance she requested from the businessmen.
Menendez has held public office continuously since 1986, serving as a state legislator before serving 14 years as a U.S. congressman. In 2006, then-Gov. Jon Corzine appointed Menendez to the Senate seat he vacated when he became governor.
Several weeks ago, Menendez filed to run for reelection this year as an independent.
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