American hedge fund billionaire William “Bill” Ackman recently sparked a debate over Uber’s tipping policy after a ride in New York City. Ackman, CEO of Pershing Square Capital Management, claimed that Uber was keeping tips intended for drivers, prompting a swift response from Uber CEO Dara Khosrowshahi.
On May 23, Ackman took an Uber ride where the driver complained that the company was withholding tips. The driver alleged that even when passengers selected to tip via the Uber app, the tips never reached the drivers. To test this claim, Ackman added a $5 tip at the end of his ride, but the driver’s screen showed no tip had been received.
Outraged, Ackman took to social media to accuse Uber of “massively increasing its margins and profits in NYC by ripping off NYC cab drivers.” He also texted Khosrowshahi directly, sending a photo of the driver’s screen, but did not receive an immediate response.
I took an @Uber today and for the first time was offered a NYC yellow cab. I thought good for Uber supporting the cabbies. I asked the driver about his experience with Uber and he surprised me by saying it was bad.
— Bill Ackman (@BillAckman) May 23, 2024
He explained that even when the passenger agreed to pay a tip… pic.twitter.com/jbBoWbYJvh
Following Ackman’s public post, Uber responded from its official account. The company clarified that all tips are passed on to their taxi partner, Curb, which then distributes the tips to drivers, typically within a day. Uber admitted that the tip might not show up on the driver’s screen immediately because passengers often tip after the trip ends, and the screen doesn’t refresh in real-time.
Uber acknowledged the confusion and noted, “This is a relatively new product for us, and we’ll work with our partners to improve this screen.”
Ackman later received a response from Khosrowshahi, confirming that Uber drivers do receive their tips, but the system’s interface needs improvement. Ackman shared an update, expressing his confidence that the issue would be resolved swiftly. He stated, “I was glad to learn from Uber that the drivers are receiving their tips. That said, the taxi drivers themselves believe that they are not receiving them because their dashboards show no tips from Uber riders.”
Ackman reiterated his support for Uber and Khosrowshahi, expressing confidence that the company would correct the issue promptly.
