UberTaxi charges up to 30% extra for each ride – but only applies in US and Canada

We all know that UberTaxi, a mobile cab booking service, has been expanding recently across Asia, launching in Hong Kong, Tokyo, and most recently, Singapore.

But what you may not know is that UberTaxi charges up to 30 percent more on top of regular cab fees. A reader says (Tech in Asia confirms this) that if you log into the Uber website, you’d see that gratuity – or tips – for each ride is set at 20 percent by default. But you can adjust the amount you’d like to give drivers, from zero to 30 percent.

But here’s the good news: Uber has confirmed that this only applies to cities in the US and Canada where it is active. In these places, a 20 percent tip for a ride is considered standard practice. So while booking a cab through Uber won’t cost you extra in tips here in Asia, it will kick in if you’re booking a cab in, say, Chicago.

“If a user attempts to tip [by cash], drivers are encouraged to remind riders that there is no need to tip, which helps ensure a seamless experience for riders. However if a rider absolutely insists on providing an additional cash tip, drivers are of course free to accept it,” says the Uber spokesperson. He adds that Uber talks about its automatic gratuity in its emails and blog posts to riders.

Yet, Uber can improve on how it brings across the fact that the gratuity only applies to the US, says Carmen Benitez, an entrepreneur and frequent Uber user.

“That just doesn’t seem like good governance or quality control and sends a very mixed message to users outside the US. As they say the devil is in the details, and they should be demanding it in all parts of their business to ensure customer support and long term growth,” she says.

Asia has been a battleground in Uber’s efforts to expand into the taxi market. In Southeast Asia, it faces strong competition from Malaysian startup GrabTaxi and Rocket Internet’s Easy Taxi. London’s Hailo could be making a move in Singapore soon.

Uber’s policy on gratuities has recently come under fire in the American court of law. Drivers filed a lawsuit against Uber, claiming that they are short-changed since it allegedly keeps most of the 20 percent fee. The policy also discourages riders from tipping. Uber wants the civil lawsuit dismissed. But a US judge rejected the bid.

See more: The future of online Asian travel isn’t up in the air; it’s buses, taxis, ferries, and trains