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thisislife2 a day ago

US tipping culture is insane:

1. If "tips" in the US are "compulsory" because customers should make up for the poor wage the delivery people get paid, why is there still a compulsion for tipping now as the wages have been increased (and presumably is "fair")?

2. And if the wages are "fair" now, why should a customer be forced to tip when they are making an order, rather than after they have received the order and can determine if the worker deserved a tip for satisfactory or exemplary service?

I absolutely understand the need to regulate corporates to ensure that they didn't steal the tips or lower their workers' salary based on it. My questions pertain to consumer rights. The government has rightly addressed the needs of the workers and preserved their right to a "fair" wage. But how is regulation that forces customers to tip at checkout itself (even before one has experienced the service) fair to the customers? (And ofcourse, by asking for a tip before checkout, you are forcing customers to give tip because apparently delivery people can see if someone has tipped or not before accepting an order, and most delivery people do not accept orders without tips or tend to de-prioritise it). Democracy is meant to balance everyone's right. Instead of forcing corporates to pay a fair wage, the government has (yet again) transferred part of the burden to customers (this time directly, instead of indirectly through taxes) and even thinks this is something to brags about:

> ... show tips nearly doubled after the city started enforcing the law and were “proof” that the apps were wrong about New Yorkers’ willingness to tip delivery drivers ... New Yorkers are consumers, but we are workers too. We want to support our neighbors who bring meals, groceries, and medicine to our doors.

Yeah, right - if someone is forced to tip because the system is designed around tips, that's not good grace driving the customers to tip. I am left to believe that this was a deliberate concession made to the corporates because it is in their interest that delivery people earn more (as long as they don't have to pay for it). So while the government maybe did do a good job in balancing the rights of the corporates and the workers, it has ignored the rights of consumers and deliberately sacrificed it.

malshe 21 hours ago | parent | next [-]

Agree 100%. We have reached a point where delivery costs almost match the food costs. It's cheaper for me to drive to the restaurant and pick up the order. Even then the restaurant prompts to leave a tip.

I vaguely remember seeing a post on Reddit showing a vending machine asking for a tip.

pcthrowaway 20 hours ago | parent | next [-]

> It's cheaper for me to drive to the restaurant and pick up the order

Of course it is... were you expecting delivery companies to perform magic while humans are required to bring you your food?

If a burrito costs $15, it may cost $30 to have it delivered from 20 minutes away; the alternative is 40 minutes of your time and $15. The thesis of delivery companies is that you value 40 minutes of your time more than $15.

thisislife2 39 minutes ago | parent [-]

You are absolutely right that the delivery services sell the convenience of saving time. The economics of it also suggests that only the rich can truly afford it regularly. That's where the price gauging comes in. In India, it is often cheaper to drive down and get the food yourself because of the business model of the delivery apps. They take a commission from the restaurant (from the billed items) and also charge the consumer a bunch of fees for the delivery (ranging from subscription, platform fees, convenience fees, surge fees, delivery fees etc. etc). This has resulted in restaurants having a two-tier pricing model with the listed price in the delivery apps being way costlier. Just last week I wanted to get some food for some guests, and the total price on the delivery app for it was Rs. 1050, where as the restaurant price was Rs. 770. So even though the delivery price was listed as Rs. 17 for me in the app (as I also pay a subscription fee), in reality I was being charged a total of Rs. 297 (the cost of a car Taxi fare, both ways!).

Starman_Jones 20 hours ago | parent | prev [-]

That happened to me as well! I was asked to tip on an automated coffee dispenser…

mistrial9 a day ago | parent | prev [-]

the whole economic ecosystem is sinking due to a spiral of low-participation, low-quality services and rising backend prices for all the legally mandated support. Lots of third world countries have a more thriving street vendor situation now than major US cities. In the local news here (California), there is a monthly column of restaurant closings -- in a place known for tourism and food.

Arguments about mandatory tipping are an expression of a power struggle between large companies, small business, workers and customers. As usual, the predominant news available to consumers paints the details in incomplete ways.. Journalists are not doing original economic research, and powers-that-be won't speak plainly.

ps- undocumented workers in retail food and commercial food supply are certainly part of this story in the USA.

source: opinion