Are taxi apps and card payments costing cabbies their tips? Making the option more seamless and attractive for customers
- Perry Richardson
- 8 minutes ago
- 3 min read
Card has reshaped everyday spending, yet many passengers still prefer to tip taxi drivers with cash. That gap is costing drivers money on card-only journeys and risks turning tipping into an afterthought rather than part of the ride experience.
Recent UK polling of 2,000 adults points to a strong preference for cash when tipping. Fifty-eight per cent favour coins or notes, while only 15 per cent choose card. Thirty-nine per cent say they tip more when using cash and 21 per cent tip only if they have cash to hand. As contactless becomes routine, 17 per cent admit they now tip less because physical money is used less often. As many as 80 per cent have avoided tipping when the only option was electronic.
Why do many riders stick with cash for tips even when they pay the fare by card? The research suggests three main reasons. More than half, 52 per cent, see cash as more personal. Forty-five per cent worry a card tip will not reach the driver. A further 40 per cent want control over the exact amount, which they feel is easier with coins or a note than with a percentage prompt on a terminal or in an app.
The same polling gives useful context on where tipping still happens. Restaurants top the table at 74 per cent, taxis sit at 42 per cent, with hairdressers at 31 per cent. Service apps matter too. Thirty-six per cent like built-in tip prompts because they remove the mental maths, yet 34 per cent feel cheated by fees or prompts that look like add-ons rather than genuine tips.
For licensed taxi drivers, there are practical ways to recover tips without relying on cash. Clarity at the point of payment makes a difference. A small card-machine sticker that states tips go in full to the driver addresses the concern that card tips vanish into an operator’s pot. A brief line at the end of the journey can also help. A simple, factual prompt such as “Tips are optional and paid to the driver” informs without pressure. Some passengers will ask how to add a set amount rather than a percentage, so knowing your terminal’s steps and offering a quick instruction can keep the moment hassle free.
Control is another factor as percentage prompts can feel vague, especially on longer trips. Offering straightforward £1, £2 or £3 buttons, plus a custom amount, reduces friction. Many terminals can be configured this way. Round-up features to the nearest pound or fiver are also easy for riders to accept, particularly on short hops where a percentage can look out of proportion to the fare.
Receipts matter too. Showing the tip as a separate line on a printed or digital receipt reassures riders that the money is recorded and directed as intended. Business travellers often need that line for expenses. If your terminal or app allows automatic email receipts with the tip itemised, use it and offer it every time.
Taxi apps also have a huge role to play. The research split between punters who like built-in options and those who feel cheated shows how a clumsy prompt can backfire. Clear language is essential and a tip should be presented after the fare is shown, not bundled with fees or service charges. The app should explain, in one line, that the tip goes to the driver and whether the platform takes any cut. The default should be opt-in, never pre-selected, with simple fixed amounts and a custom entry. Percentages can remain available but should not be the only choice.
Timing and reminders help. A gentle nudge after drop-off, once the rider has rated the trip highly, keeps tipping in mind without making it feel compulsory. Many riders decide in those few seconds. Make the journey receipt easy to find in the app, with the tip shown on its own line, and allow late tipping within a short window for anyone who skipped the first prompt.
There’s also a big argument that a standard set-up for tip screens could also help make the process more seamless for return customers. Consistency across all vehicles helps riders learn the process and reduces the sense of guesswork at the end of each trip.
Card payments do not have to mean lower earnings from tips. With clearer prompts, proof of where the money goes, simple amounts and quick settlement, passengers are more likely to add something on top of the fare.
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