Comment by voidUpdate

2 days ago

What confuses me most is when you are given the option to give a tip before any service has been given. On deliveroo, for example, I have the option to tip the driver while I'm at the checkout. Why would I give a reward for good service when I have no idea if the service is even good? There's already a rider fee as part of my bill, so it doesn't make any sense to me to give them more money at that point

It is a mechanism to move labor costs to the consumer. On some delivery apps , the driver can decide which jobs to take based on the pre-service tip. So the companies have effectively put the responsibility to pay driver's base wage on the users themselves, while the company still takes a huge corporate cut

  • I suggested we do this at work. We’ll add a tip field to our Jira tickets and whoever’s ticket is worth the most gets priority. Oh you submitted a production incident a week ago? Sorry, there’s not even $5 on it, we filter those out.

    • Fun fact, we had this at an old job. It was a charge code field in Jira. It was required whenever you requested work from an external team. It operated like a credit card with a set budget. If you bothered other teams a lot, you ran out of money. Department heads set their price.

      It sounds great in theory. But a black market quickly developed, and people figured out ways to circumvent it. People created tickets for their own teams and shared laptops.

  • On delivery apps it should be called a "bid" and I think honestly it would be more ethical than the shady nonsense they do now if they went all in on that.

    • If the apps were actually what they claim to be (a marketplace to connect hirers and workers) that's exactly what you'd have - the cost of the food + flat fee for the platform + your bid for the work. The platform could even suggest a bid, but you could choose to bid higher or lower depending on what you think would go through.

      But that's not what they are; they're shady "avoid employment laws" companies.

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    • i like the idea of bids, but only if its coupled with the ability of workers to just outright reject the offer.

      the problem is that there's still a guarantee of service for the user regardless of what you bid. if i want my burritos delivered at 2AM and am only willing to bid $1 on delivery labor, i shouldn't expect that my burritos will be delivered.

      for tips, the model is "the work will be done and i'll pay extra if it's good". but with bids its "how much do i need to pay to get this work started"

  • > It is a mechanism to move labor costs to the consumer.

    How does this work? The corp already handles some form of payment to the worker, especially when you tip as part of a card payment. And in both cases, the consumer foots the bill.

    How's it different from paying the worker more and asking for more money upfront?

    • The gready sleazeballs who like the "tipping" system (mostly, restaurant owners) would prefer to pay all their employees $0 and have all diners/customers/etc pay 100% of the wages out of guilt.

      While 10% was customary in the first half of the 20th century, the standard tip gradually increased to 15% by the 1980s.

      In 2025 it's not uncommon to see little shortcut buttons for 20, 25, 30%. You can see where this is going. They want us to tip 50% and they pay $0, even though restaurant menu prices are one of the things that has experienced more inflation than other things.

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    • There is a very clear different from the consumer's point of view between paying a 20% delivery fee with no tip (and realistically having most drivers still expect an in-person tip) and a 5% delivery fee with a tip amount of your choosing (and maybe only 1/1000 drivers expecting/requesting yet more).

      I have always been a generous tipper and I try to always put myself in that person's shoes when deciding how much to tip but even I notice the psychological difference. If you don't ever think about it, have never had a job waiting tables or dealing with the public, it'd almost be a nonstarter to have a higher delivery fee regardless of tip expectation.

    • psychologically they are very different. Framing the wages as a "tip" moves the conversation to the drivers and users, where users think tips are an out of hand culture problem and drivers view the users as stingy. Then the company sits out of the spotlight collecting their absurd rents

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    • It moves the real cost of the additional labor from the prices displayed for items (like you would see in a B&M grocery store) to some tertiary part of the purchase process that is displayed 1) after the used has gone through the effort of app navigation and selecting their purchases and 2) has been through the majority of the purchase funnel and self-selected as a high-prospect sale. This helps keep the listed prices for items in these apps relatively comparable to their in-store listed prices, acting to convince the user the sale is reasonable (similar to online sellers making up for low listed prices with high shipping prices). Moving this additional cost to some tertiary step lessens the impact of goods pricing seeming too high by adding a "small optional fee" at the end of the purchase process that the user is expected to subconciously understand is effectively a bid on labor. I'd imagine the psychology behind it is depressing.

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    • Different because now list price of a sandwich is $8.99 instead of $14 that customer will actually pay. Hotels, resorts, restaurants, tours etc are master at this. Even after knowing these add-ons people fall for it often enough to keep this practice running.

      Besides economists think positively of this so it has support not just from interested parties but officials, think tanks etc.

> when you are given the option to give a tip before any service has been given [...] why would I give a reward for good service

Are there still customers giving tips as "a reward for good service"?

I'm trying to imagine a curve representing the distribution of "quality of service".

What shape is the curve, and where on it would a 20% tip and a 0% tip be?

  • >Are there still customers giving tips as "a reward for good service"?

    As in any tip at all? No, from me. I don’t think I’ve never _not_ tipped when the situation expects it (sit down restaurant being served). I know the person there is being paid less than minimum wage (where I live), which is already too low in my opinion, so they get something.

    The amount of the tip certainly is highly dependent on level of service. That could be a significant difference at the end. I’ve tipped over 100% when the staff has done someone that stood out to me.

    (Having been a server in the past and now in tech, I feel guilty about the work-level/salary imbalance, so I am generally generous with my tips.)

    • > I know the person there is being paid less than minimum wage (where I live)

      The restaurants I worked at (a variety of family places and bars) everyone was paid $2.13/hr or something like that. And after taxes, you would get a paycheck for $0.00.

      but

      The same people who jumped to tell you that they got paid less than minimum wage (especially when customers inquired about it), were making $40-80K year in reality. The service industry is all about hours worked, and which hours you work. A lot of young workers refuse to work the busy shifts (weekends), and hate dinner shifts (could be out with friends) so they only work the slow shifts and make ~$20/hr * 18 hours or something like that.

      But the people there to make money? They work all the busy shifts and slow shifts to fill the gap (they work a full 40 hours), and the money is insane for what the work is. Meanwhile they will happily tell you they get paychecks for $0.00 and only made $50 on Monday at lunch.

  • In my country, which does have a tipping culture, the norm is to give a 10% tip in restaurants as a default, for competent service, decent food, etc. If the service is worse than normal (rude server, cold food, huge wait times, mistaken orders etc) you'd live a lower tip, possibly none at all. If the service is great, you might leave a higher tip - though 20% would be considered huge, 12-15% might be quite normal for very good service.

  • > Are there still customers giving tips as "a reward for good service"?

    Sad if this is no longer the case.

    In the UK at least (and the rest of Europe too, as far as I can tell), this is still very much the case. The curve varies with the individuals tipping. I would be quite happy to give 20% if the service was outstanding. I’m equally happy to not tip at all if the service was very poor.

    • > In the UK at least this is still very much the case.

      Except for the very pervasive 12.5% "discretionary" service charge the you would have to request to be removed. Which is a genius piece of social engineering.

  • I live in the UK, and I personally have never given a tip, I don't think I've even seen it as an option other than physically giving the other person some cash, but AFAIK its generally seen as something you do if the service was excellent, but as I say I've never done it myself. I'm not generally in situations where it could be warranted, like I don't really eat out much or anything like that

    • As someone who also lives in the UK this surprises me. Almost every restaurant I eat at now takes the liberty of adding a 10% service charge onto every bill. I assume the idea of which is to make it awkward/embarrassing for you to request to have it taken off.

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  • Yes, in countries outside the US I don't tip unless I got especially good service. Servers get paid (at least) minimum wage here and if they want more they should take it up with their employer like the rest of us.

    In the US I usually tip but have refused to do so when the service was especially bad - although even then its a hard decision because you often don't know who is actually responsible for the bad service.

  • In my country the norm is for tips to be rounding based rather than percentage. So if your bill is 327.5, you would pay 350, effectively a "keep the change" sort of gesture.

    I have certainly starred them in the eye and waited for them to ostentatiously count out every last penny when the service was truly abominable. It's a fairly effective way to give feedback.

    You can also of course round up higher, so in the previous example for exceeding expectations you could round up to 400.

  • In 30+ years I’ve given exactly two restaurant servers 0% tip - it takes a lot for me to give someone nothing, but somehow they met the challenge.

  • > Are there still customers giving tips as "a reward for good service"?

    Are there customers giving tips for other reasons? Any examples?

    • In the US, the tip is an expected part of the expense of eating out (and increasingly having any human in the loop). I hate it, and I really wish it wasn’t the case, but it pretty much is. If you say “I didn’t tip because the service was what I expected”, you’re pretty much considered an asshole.

      (Incidentally, this is also one of the reasons why the costs of eating out in the US and seem so much lower. Most people who come from non-tipping cultures don’t understand that Americans actually tend to pay significantly more than sticker price, especially after you include taxes, which are also often excluded).

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    • If you’re asked for a 20/25/30% tip before they even start preparing your food, and you need to make extra clicks while the tip recipient is looking at you if you want to tip lower, theres a small fear that the food you ordered wont be prepared as well as someone who left the tip

    • On a gig delivery app, you give a tip so that someone will be happy to deliver it and not mess up your food, I think. a 0% tip is risking stuff. You can't really say it's a reward for the service though, more of a payment to secure better service?

      Lots of places will now ask for tips before the food comes out even in person now - lunch sandwich shops, etc. I don't think they'd be unprofessional enough to mess up your order if you didn't tip, but maybe they'll be happier with you or be more generous if you tip now too.

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  • >Are there still customers giving tips as "a reward for good service"?

    That's the only way people give tips here (not US tho)

    • Hehe, in here (US) tip for a bad hair cut in 15 dollars is 5 dollars. For better haircut maybe go for fancy salon if one is so particular about hairs.

It might be a way for them to prioritize your order before others as they see how much money they earn, so actually it's a bidding process disguised as tipping. I'm not sure if it's shown in the backend though, but I have seen things like this in other delivery apps.

  • Why would they prioritize you when you've already paid? Wouldn't they first go after the possibility of more tip money on jobs that haven't yet paid it? I mean, if I was a driver, unless there are more high tip jobs than I could handle, I'd take those and fill in with low tip jobs, and I'd deliver the low tip jobs first in a hope of getting an after the fact tip.

    • Delivery drivers on some apps are told the expected pay for a trip. If you don't tip, they might decline the job because it costs them more to deliver then they make.

      This makes your order sit longer until someone decides to do it, perhaps because there's a penalty from the company for declining jobs, and the driver is willing to lose money to remain in good standing

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    • Ooh that’s actually a really interesting question. Because you’ve retroactively signaled that you will pay more for priority service? Or that you’re dumb. Needs to be iterated. Incentives depend strongly on population of both drivers and customers.

  • A lot of times, that makes the order come slower. A higher tip means the app will pair your order with someone else that didn't tip or tipped smaller, using your money to make up the difference. I consistently get faster deliveries when I tip towards "the average" instead of over tipping

    • Why would you keep using an app that you suspect was cynically exploiting your generosity like that? I’d drive every time rather than encourage such behaviour.

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In a Louis Rossmann video (i think it was the one on food delivery guys on e-bikes) he mentions never tipping in app but leaving a note that says he will give a cash tip if the driver brings the food straight to his door. That seems like a decent compromise as it doesn't let the app take a cut from the tip and makes so the driver actually goes the extra mile to 'deserve' the tip.

  • Weirdly on Reddit I keep getting the doordash and ubereats communities pushed at me - there is a very strong view amongst people using these apps that anyone who says they will "give a cash tip" will not actually do it, so it's probably not as beneficial as you might think.

    The tips on the apps nominally do go entirely to the driver.

  • >* but leaving a note that says he will give a cash tip if the driver brings the food straight to his door.*

    Why, where else would they take the food? Leave in at the patio? Drop it on the lawn?

    • About half the time I order UberEats I get a call from the driver that they're here and to come downstairs because they won't enter my apartment building. Could be laziness, it could also be because the street parking is always full and so the only place to park close by is a fire hydrant.

      The app has different options for meeting in the lobby / come to my unit and I always select my unit, but whatever, I get why they might not do that.

    • Leaving it on the porch, on the street closest to their car, with the front lobby in an apartment building...

      There's quite a lot of places people will think to leave food if they're rushing to pick up another job.

    • Some people live in multi-tenant buildings where "your door" is not the buildings entrance.

You’re not paying for a service, you’re bidding in an open market. They don’t tell you this but it’s the reality.

Drivers can tell if you don’t tip and all of the experienced ones will decline your order.

Though these apps have done a lot of work to conceal the amount the driver actually gets until delivery is completed.

  • Hm. If it is an open market, the consumer should also be able to decline/filter drivers, that take tips. Maybe it is a market, but sadly not open.

  • > You’re not paying for a service, you’re bidding in an open market.

    IMHO, this isn't a new phenomenon. Close to 18 years ago, I lived in a city with a popular pizza spot that was about a 10 minute walk away. Normally I'd walk, but having a newborn make that challenging, so I'd get delivery.

    Typically, the delivery would take 60+ minutes on a busy night, but after a few consecutive Fridays of a decent tip for the order, the pizza would arrive "burn your fingers" in about 20 minutes.

  • > bidding in an open market.. they don't tell you... apps done a lot of work to conceal

    Markets have prices.

    Open markets have transparent pricing for efficient discovery.

    Concealed prices in deniable auctions are closer to dark pools than open markets.

  • Doesn’t affect anything in my country using the same apps. I’ve always gotten fast delivery, as does everyone I know and nobody tips. Tipping is for yanks.

  • this feels weird to me because i always thought i already paid for the service as part of my order. having to go into a open, blind bidding war with other customers to gett my order processed ...

we can regulate the intermediary

we can literally get the state to say it is illegal for the point of sale system to have that or sell that to merchants

we can tie it to business codes that dictate which type of business it is to payment processors

control behavior by regulating the intermediary

the beauty of this philosophy is that it works under any system of government: don’t worry about the rights afforded to merchants or individuals, don’t burden them with the law at all, only intermediaries!

poof, tips at the point of sale system before receiving service disappears as fast as it came, short Square (now Block)

we can go deeper too

That's bad, but even worse is the Bluetti website, which asks you for a service tip FOR AN ONLINE ORDER!

  • I started using Fiverr for outsourcing some tasks and they push you to tip after the transaction.

That's not a tip, it's a bid. Expect a lot more businesses to start operating like this if no tax on tips goes into effect.

A delivery app tip is a way to influence drivers to pick your order, they can see what the expected value of a delivery is and if your tip is too low, your order will take a while.

Consider it a premium that prioritizes your order, that’s what it actually is.

Tipping is more like a form of price discrimination. It allows restaurants to indirectly charge different customers different amounts based on ability to pay.

Tip before service is a bribe in my book.

(Uber started to pop up tip options before the ride ends, sometimes as soon as the ride starts.)

They’re just saying the quiet part out loud, the tip isn’t for service, it’s for their basic wage.

It's mostly a convenience, so that you don't have to look for coins or remember to tip online later. Uber here even tells you that the driver doesn't get informed about the tip until an hour after delivery, so you can still edit it in case you change your mind.