Whenever I go to a restaurant, hire a taxi or accept any service, the one thing that keeps running through my mind is, how much should I tip? Calculating tips is honestly a pain in the neck. Am I stiffing them? Am I paying too much? Somebody just tell me how much I should pay!!
So, to get rid of this uncertainty, I turned to the internet. After a couple of hours of research, I’ve come up with few ground rules when it comes to tipping cab driver. If you’re interested, here they are:
Why should you tip your cab driver?
Okay, before we bring out our calculators, let’s first talk about why we need to tip cab drivers.
Most cab drivers are independent contractors that lease their cabs from the cab company. So, they have to give up a large portion of their earnings to the cab company. The cab company can either charge a flat rate per shift, or a percentage of their earnings. If the company charges in percentage, they usually charge a third of the total earning the driver makes. If it’s a flat rate, the daily charge is usually $75 to $150. On top of this, they have to pay for gas (they need to refill the tank at the end of their shift), insurance, vehicle maintenance, credit card transaction fees and a few extra charges depending upon the cab company. This seriously cuts into their income. As a result, they work for 10 to 14 hours a day to earn their living. Your tip makes up more than a quarter of the cabbies total income. So be a little generous and make their day.
Standard tipping practice:
The 10-15-20% rule
Just as in restaurants, you can follow the 10-15-20% rule while tipping your cab driver. Pay 15% tip for a normal cab ride. If the cabbie is very helpful and you like their service, a 20% tip should do the trick. You can tip more if you like, but that’s up to you. And if the cab ride was particularly bad, tip 10% or less. After adding the tip, simply round off the amount to the closest dollar value (e.g.: $32.79=$33 and $32.17=$32)
Over-Tip on short rides
If your cab ride is very short and the bill is less than $10, try to tip a bit extra. The general rule of thumb is to tip $1 and then round up the figure. For instance, if your cab ride costs $6.72, tip a dollar (=$7.72) and then round up the figure (=$8). If the decimal value is very low (e.g. $6.11), you can simply round up the figure (=$7) and you’re good to go.
Tips depend on the locality
How much you need to tip might differ depending on where you are. If you’re hiring a taxi in a major city, you might want to tip a bit extra (In New York, the standard tip for cab drivers is 20% – 25%). Whereas, if you’re somewhere less urban, most people usually tip a bit lower (10% – 20%).
When to tip extra
$1 for each extra service
If the cab driver helps you with your bags or groceries, finds you hotels, or offers any extra help than he needs to, you can thank him by adding an extra dollar for each service. Though, if your luggage is particularly heavy, you might want to tip $2 per bag.
On Holidays and rush hours
If you’re riding a cab on a holiday or during rush hour, try tipping a bit more. Taxi drivers are also people with families to get home to. And if they’re driving you around instead of spending the holidays with their families, they deserve a bit of your gratitude.
When Paying with Credit Cards
If you’re paying with credit cards, you need to know that your cabbie will be charged 5%-10% of your fare as a transaction fee. So, try tipping them a bit more to make up for the money they’re about to lose.
Multiple stops
Yes you are within your rights to demand multiple stops when you’re in a cab, but it can be a bit of a hassle for your cab driver. So, tip them a bit more to thank them.
When you have the driver wait for you
If you’re in the habit of making your cab driver wait for you, you should know that while they’re waiting, they are losing money that they could be earning by ferrying around another passenger. So be a good person and tip them a bit extra for waiting.
Things to consider
While deciding on how much to tip your cab driver, here are a few factors that you should consider:
Local knowledge
A good cab driver should know their way around town. You shouldn’t have to guide him through every street and turning. They should know which way to go. And if there are multiple routes, they should take the shortest one, or the one with least traffic. You can tell them which way you need to go once. After that they should be able to navigate on their own. If you have to hold their hand and guide them through the trip, feel free to reduce the tip.
Speed of service
Yes your cabbie cannot prevent traffic jams. But they should be able to take you through the route with least amount of traffic. They must get you to your destination promptly, and with little hassle. Lower the tip if they fuss or take you along a circuitous route. On the other hand, if they avoid traffic jams, bad roads and get you to your destination fast, be generous with the tip.
Extra service
As I mentioned before, if the driver offers extra service, you need to add it to your tip. It is customary to tip $1-$2 per bag for helping with the luggage. And if they go above and beyond, pointing out interesting places and giving out tips for surviving the locality, let your tip reflect your gratitude.
Behavior
The main factor that should determine your driver’s tip is his behavior. Does he drive safely? Is he friendly, helpful and gets you to your destination promptly? Or is he abrasive, talks on the phone and ignores traffic safety rules? Reward him for the former and lower his tip for the latter. And if at any time the driver’s behavior makes you fear for your safety, get out of the cab and report about him.
Follow these simple guidelines while tipping your cab driver.
And if you have had any interesting cab rides lately, we’d love to hear about it in the comments below:
