SACRAMENTO–California State Assemblywoman Lorena Gonzalez Fletcher (D-San Diego) Wednesday won bipartisan approval of her legislation requiring that ridesharing aps that take credit card payments also offer the ability to add a tip to the charge. Assembly Bill 1099 was approved by the Assembly on a vote of 41-22.
“Many people don’t carry cash anymore, so when Uber decides that it won’t allow its customers to tip with their card, they’re taking money away from their drivers. If a customer can pay with a credit card, they should be able to tip with a credit card,” Assemblywoman Gonzalez Fletcher said.
There are as many as two million workers in the gig economy, where transactions are almost exclusively made with credit or debit cards. According to the Pew Research Center, 56 percent of gig economy workers say the income they get from their gig work is an “essential or important” part of their finances. Uber, one of the most well-known and widespread companies in the ride sharing industry, does not allow customers to leave a tip via credit card. This effectively bans tipping, as it is increasingly common that customers do not carry cash and all fares are required to be paid for by credit or debit card.
A recent survey revealed that 42 percent of adults do not carry cash. That trend is even more pronounced among young people, with a majority of 18- and 19 year-old respondents stating they do not feel comfortable carrying cash. An estimated 42,000 people work as rideshare drivers in the San Francisco Bay Area alone. AB 1099 will help these workers by ensuring their customers have the option to provide a tip.
