Uber has introduced in-app tipping for drivers, a feature sought by the ride-hailing giant’s workforce and long offered by chief competitor Lyft.

The feature was launched Tuesday in Minneapolis, Seattle and Houston, and the company said it will add more cities in the coming weeks. Uber said it expects tipping to be available to all U.S. drivers by the end of July.

“Why now? Because it’s the right thing to do, it’s long overdue, and there’s no time like the present,” Uber said in a news release.

Lyft has offered tipping in its app since 2012, and said in March that drivers have netted more than $200 million in tips since then. TechCrunch reported this week that the figure has surpassed $250 million.

Uber touted its in-app tipping announcement as part of an initiative called “180 Days of Change,” where it introduced a series of features aimed at improving the driver experience. The changes include: shorter cancellation windows for riders – down to two minutes from five – compensation during wait times, and a $2 “teen fare” for trips on teen accounts. The teen fare will initially be available in Seattle, Phoenix and Columbus, Ohio, Uber said.

Uber says it won’t take a cut of driver tips. Meanwhile, riders will fork over costs for extended wait times, beginning two minutes after the driver arrives, according to an Uber spokesman. The rider will see a separate “Wait Time” fee on their receipt once the trip ends.

Uber and its workforce have been engaged in an extended labor struggle as drivers have pushed for better labor protections and higher earnings.


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