How Software in Half of NYC Cabs Generates $5.2M a Year in Extra Tips

Re:How Software in Half of NYC Cabs Generates $5.2M a Year i... by rahimnathwani on Monday January 05, 2015 @08:26PM (#8842426)

> It's not complicated

It _is_ complicated. It's so complicated that (i) there are discussions on the internet about whether 15% or 20% or 25% is fair, and (ii) there are many specialised 'tip calculator' apps.

When I walk into a restaurant, how much should I be expecting to pay for 'meets expectation' service? Is this a % of the bill, or a $ amount related to the amount of time I'm being served (a proxy for the amount of service I get)? Whatever your answer, are you confident that most other patrons of said restaurant would agree with your recommendation?

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Re:How Software in Half of NYC Cabs Generates $5.2M a Year i... by developer1 on Tuesday January 06, 2015 @01:14AM (#8843148)

One thing that is true that makes no sense is that tips are designed to be based on the dollar amount of the bill. Why should a 45 minute service of a $100 meal mandate a larger tip than the same 45 minute service of a $50 meal? The staff has put in the same amount of time and effort to serve both meals... yet the more expensive meal expects a larger tip. This aspect makes no sense whatsoever. A tip should be based on the number of clients served at a table + the time spent in the restaurant + perhaps additional money for special requests or complex meals.

If anything, you'd think the cheaper meal should have a larger tip since you're occupying a spot for a cheap meal when they could have had a client sit down and spend 3x as much as you. It's all backwards, the fact that the tip is based on the dollar amount of the meal...

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Re:How Software in Half of NYC Cabs Generates $5.2M a Year i... by maxerickson on Monday January 05, 2015 @09:11PM (#8842550)

I didn't say tipping was a great system, I said that you shouldn't eat at sit down restaurants in the US if you have a problem with it.

I guess if you want external validation of what is fair you can make it complicated, but I was trying to focus on tips not being extra compensation in that specific situation.

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Re:How Software in Half of NYC Cabs Generates $5.2M a Year i... by rahimnathwani on Monday January 05, 2015 @10:16PM (#8842737)

> I said that you shouldn't eat at sit down restaurants in the US if you have a problem with it.

I expressed no opinion on this point.

> I guess if you want external validation of what is fair you can make it complicated

Even if I don't want external validation of what is fair, it is still complicated enough that I need to pull out a calculator after a date with my wife.

> I was trying to focus on tips not being extra compensation in that specific situation.

Agreed, and this is the reason I tip according to local norms when I'm in the US.

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