CABBIES SPLIT ON TAXI TIPS: How much of an impact does cash and card payments really have on tips?

TaxiPoint’s recent report that passengers are less likely to tip by card than cash sparked a busy response from drivers and readers. The feedback painted a mixed picture. Some drivers say card use has suppressed round-up generosity. Others say well-set terminals and clear prompts have lifted gratuities.

Several drivers pointed to cash habits that naturally create tips. Antony Di Cesare said that on an £8.10 fare paid by card he receives £8.10, but with cash many passengers hand over £10 and say keep the change. That small round-up rarely carries over when a fixed amount is typed into a card reader.

Not everyone agreed. Some drivers said card and app journeys now generate more tips than cash. Kev Browner said he gets more tips on card and through the app than in cash. John Manston also pushed back and said he is getting plenty of tips with card payments. Their experience suggests the way terminals are configured, and the way drivers present the option, has become as important as the payment method itself.

Several readers said adding a tipping prompt transformed results. Philip Bradley said his SumUp device allows customers to add a tip, and since enabling the feature his tips have gone up. Adie Adie urged colleagues to use readers that show a tipping choice, adding that he sets 7, 10 and 15 percent options and most customers choose 7 percent. He linked tips to consistent service, including a tidy cab and help with luggage, and said it is all about customer service.

Black cab drivers noted that in-vehicle systems already include a gratuity prompt. Itfaq Ahmed said card payments in taxis present an on-screen question asking if the passenger would like to add any gratuity. That prompt keeps the conversation simple at the kerb and reduces the awkwardness some passengers feel when deciding how much to add.

There were also questions whether handheld machines are allowed. Rules on device type sit with licensing authorities and taxi conditions. In London, for example, card terminals in taxis must be fixed and accessible to passengers, while handhelds have been restricted. Elsewhere policies can differ, so operators should check local licence terms before switching hardware.

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Stuart Macdonald said that when you get a tip on card you still get charged for it and taxed. Processing fees apply to the full card amount, including any tip, and gratuities count as taxable income.

Cultural habits were raised, with some readers saying international visitors are more familiar with tipping on terminals. Others said local short trips still deliver regular round-ups. The common thread running through the responses was that clarity helps. When a reader shows fixed or percentage options on screen, passengers are more likely to press one than to key in a custom amount.

A few readers said tips are less common full stop and that service quality is the deciding factor regardless of payment method. That view mirrors feedback from other parts of the service economy. Bars and restaurants report similar patterns, with tipping prompts now shaping behaviour as much as the wallet in use.

If cash use continues to decline, tipping practice in taxis may depend less on coins and more on the design of the payment journey. For now, the message from drivers is split. Configure the reader to present a fair choice. Keep the cab clean. Help with bags. Offer a smooth trip. Let the passenger decide with a single tap.