Are Uber and Lyft Limiting Driver Tips?

Did you know there is a limit on the amount that a passenger can tip a driver for both Uber and Lyft? There is no official support documentation on their websites about this!

Let’s say my ride is over and I wanted to tip my driver. This was a great ride and I’m feeling generous. Let’s try $11. But the app says, “This trip has a $10 tip limit.” Why? There is a limit in place! You can’t confirm the limits on either websites, they don’t list it.

Take a look at Joe’s video to see the rest of the story, and check out the video transcript below if you’d like to read what he covers.

What is the tip limit for Uber & Lyft?

I sent both Uber and Lyft direct messages on Twitter to confirm to hear it from them that there is a tip limit and here were their responses. Uber said tips currently have a two-time-fare limit.

For example, if a trip is $5, the maximum tip is $10. And for trip fares over $50, the maximum tip amount is $100. The maximum amount of passenger can tip a driver overall is $100.

Lyft’s response was that there is a limit on the tip amount that can be processed through the app. The app limits gratuities to $50, or 200% of the cost of the ride, which is essentially the same as Uber. The Lyft limit is two times the cost of the ride, but Lyft limits it at $50 overall. You can’t tip higher than $50, and Uber limits it at $100.

A way around the tipping limits

Uber and Lyft will not allow you to tip more than two times the amount of the fare. There is a way around this. Passengers can tip you with cash if they want to, but how many people actually carry cash anymore?

Why is there a tip limit?

Why limit generosity? Uber’s and Lyft’s explanations were that they wanted to safeguard against fat fingers. For example, typing an extra zero when you’re giving a tip. I don’t know if I’m buying that though.

Why not just include a confirmation screen if the tip seems higher than normal. It seems like an easy workaround. And Harry’s thoughts were that it had more to do with the 3% fee that they both have to pay credit card companies and also to avoid scams.

Kevin on his Youtube channel, the apptrepreneur, had another take. He explains that when an Uber driver gets really generous tip, they may choose to scale back their driving for the day. And Uber wants drivers out there, they want them driving. A driver could reach their daily daily earnings goal earlier than usual and log out earlier than usual.

Generosity should not have a limit

Overall these massive tips don’t happen very often, at least not in my case. My typical tip is anywhere from one to $5. I guess that’s average for everyone, but there will always be some occasions where a passenger wants to be really generous and rewarded driver for excellent service and that generosity should not have a limit.

The best solution is that if a passenger really wants to give you a generous tip, let them know that there is a tip limit in the app. And if they want to tip you above and beyond, they can give you cash. You could also carry around a square reader if you wanted to, since most people probably don’t have cash.

What do you guys think? Did you even know that there was a tip limit? Have your passengers ever complained to you about the tip limit? Have you ever had a passenger that has tipped you above and beyond with cash? I’ll leave a comment below and let us know. Thanks again for watching and drive safe.