Los Angeles Times

Uber is adding built-in tipping option to its app

Passengers will also be charged by the minute if they keep a driver waiting too long.

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Uber is enabling passengers to tip its U.S. drivers with a tap on its ride-hailing app for the first time, part of a push to recast itself as a company with a conscience and a heart.

Besides the built-in tipping option announced Tuesday, Uber is giving drivers an opportunit­y to make more money in other ways.

Riders will be charged by the minute if they keep an Uber driver waiting for more than two minutes. Uber also is reducing the time to two minutes from five minutes that riders have to cancel a ride after summoning a driver to avoid being slapped with a $5 fee.

Uber won’t take any part of the tips given to drivers. The San Francisco company will continue to collect a portion of ride-cancellati­on fees, as well as the new waiting-time charges.

The tipping option, long available in the app of Uber rival Lyft, will be available beginning Tuesday in three cities: Seattle, Houston and Minneapoli­s. Uber plans to make it a staple in its app in all U.S. cities by the end of July. The other features are to roll out in August.

Uber had spent a long time sticking by its decision not to build in a tipping option, even though drivers commonly requested the feature.

“We felt it would be better for riders and drivers to know for sure what they would pay or earn on each trip — without the uncertaint­y of tipping,” Uber said in an April 2015 blog post. “Riders tell us that one of the things they like most about Uber is that it’s hassle-free. And that’s how we intend to keep it.”

The current attempt to smooth over the company’s sometimes testy relationsh­ip with drivers is part of a broader effort to reverse the damage done to Uber’s reputation by revelation­s of sexual harassment in its offices, allegation­s of the theft of trade secrets and an investigat­ion into its efforts to mislead government regulators.

“These drivers are our most important partners, but we haven’t done a very good job honoring that partnershi­p,” said Rachel Holt, regional general manager for Uber in the U.S. and Canada. Holt is part of the leadership team running Uber while Chief Executive Travis Kalanick is on a leave of absence.

The expanded earnings opportunit­ies are the first step in what Uber is billing as “180 days of change” for its U.S. drivers. Holt declined to describe what is planned during the rest of the campaign.

While building the world’s biggest ride-hailing service over the last eight years, Uber also developed a reputation for cutthroat tactics that have occasional­ly outraged government regulators, its drivers, its riders and its own employees.

The company’s hardchargi­ng style also has caused legal headaches.

The U.S. Justice Department is investigat­ing Uber’s past usage of phony software designed to thwart regulators trying to curb the growth of its service. Uber also is fighting allegation­s that it’s relying on a key piece of technology stolen from Google spinoff Waymo to build a fleet of self-driving cars.

Drivers aren’t the only people Uber is trying to treat better. After an internal investigat­ion uncovered multiple instances of sexual harassment, bullying and other boorish behavior within the company, Uber fired more than 20 people and pledged to create a more harmonious culture for its employees.

A more extensive report compiled by the law firm of former U.S. Atty. Gen. Eric H. Holder Jr. chastised the company’s leadership and recommende­d a long list of changes that Uber’s board adopted. When it released the Holder report, Uber also said Kalanick was taking an indefinite leave of absence amid criticism of his freewheeli­ng management style and after the death of his mother in a boating accident.

Kalanick exemplifie­d Uber’s sometimes uneasy relationsh­ip with its drivers this year when he got into an argument with a driver who was unhappy with his pay. The encounter was captured in a video posted online.

Uber also has wrangled with drivers in the courts over its insistence on classifyin­g them as contractor­s instead of employees to avoid paying them benefits and overtime. So far, Uber has prevailed in that battle.

Holt said the company talked to thousands of drivers before making the moves to boost drivers’ incomes. Uber also is trying to make it easier for drivers to transfer their earnings into personal accounts more quickly.

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