Why No Tipping on UberEats in New Zealand?

When it comes to tipping in New Zealand, the practice is not as prevalent as it is in the United States. Unlike in the US, tipping is generally not expected or common, with it being reserved for when exceptional or good service is received. This contrasts with the expectation in the US where tipping is often seen as necessary to supplement the low wages of service workers.

UberEats and the Tipping Debate

UberEats, however, is a notable exception in the New Zealand market. While apps like DoorDash and MenuLog do not have an in-app tipping feature, UberEats has this option enabled. This could be seen as a convenient way for customers to add a tip for good delivery service, but the question arises: why is tipping behavior so different on UberEats?

Customer Perspectives: A Matter of Fairness

As an UberEats customer, I follow a principle that any tip is only due when the service is exceptional or good. In my experience, I tip approximately 10% of the order value. According to my knowledge as a driver, this amounts to 30-40% of the delivery fee the driver receives. Conversely, if the service is subpar, no tip is given. This is a personal standpoint that reflects the broader trend of expecting fair compensation from the service provider.

Some customers might feel that the sheer costs involved, including fees and high delivery charges, make tipping less feasible. In one instance, a 25.00 dinner order resulted in a delivery charge of about 10-12 dollars, which already amounts to a significant surcharge. Furthermore, to tip an additional 15% can be a burden, especially for those with limited financial means. As a result, some individuals opt to pick up their own food instead of using the service.

Driver Perspectives: Earning Through Service

In my role as an UberEats driver, I strive to provide fast, efficient, and friendly service. Consequently, I often receive tips from customers who appreciate the quality of my work. However, the rate of tipping can be low, with a typical range of 1 in 5 to 1 in 10 customers tipping, indicating that despite my efforts, the majority do not feel inclined to tip.

Underlying Issues in the Tipping Culture

The debate around tipping extends beyond just UberEats. It touches on broader issues of minimum wage standards and fair compensation. In the United States, the expectation for tipping is deeply rooted in a service industry culture where wages are often below a living wage. Tipping, therefore, serves as a safety net for these workers.

In contrast, many countries have established national wage standards that ensure a minimum level of compensation, making tipping an optional gesture rather than a necessity. New Zealand, for instance, has a minimum wage that includes requirements for sick leave, annual leave, and public holidays.

However, the debate over tipping extends beyond national boundaries. Some critics argue that the practice perpetuates a system of wage inequality and reflects a lack of transparency and fairness in compensation. They advocate for a shift to a system where businesses pay a fair wage and tip is an added bonus, not a required condition for service.

Empowering workers to advocate for fair wages and benefits can lead to a more balanced and equitable society. By ensuring that businesses pay a fair wage, the need for tipping becomes less of a necessity, and workers can receive fair compensation for their work. This not only benefits the workers but also leads to better service for customers.

Current scenarios in the US show that many workers, especially those in the food service industry, rely on tips to meet their financial needs. This reliance can be a form of corporate exploitation, leading to an unfair distribution of wealth. Addressing these issues can help create a more just and equitable system for all workers.

As individuals, we have the power to influence this culture. By supporting businesses that pay fair wages and avoiding those that rely heavily on tips, we can help shift public opinion and drive change. Ultimately, this can lead to a more sustainable system where all workers, including delivery drivers, receive fair compensation for their work.