The Uprise of Tipping with Tech

Prior to the integration of technology in our daily lives, it was common for small businesses such as shops, cafes, and restaurants to have a receptacle labeled “tips” that would either be brimming with cash or only contain a few coins. It was not mandatory for customers to leave a tip, and some individuals may have considered it unnecessary to do so in situations where the service provided was undemanding, such as purchasing a $6 drink. Instead, they may have preferred to reserve tipping for more upscale dining experiences where waitstaff provided more personalized attention.

What Changed?

What caused this change in tipping culture was a result of the two years of pandemic our society endured. COVID-19 caused many small businesses to slow, and even shut down for over two years because of quarantine, and other factors throughout the pandemic; so food/drink businesses suffered immensely. To overcome this obstacle, many places have aimed to make back what they lost during those two years by raising the prices of their items, adding discretionary items to buy along with their meal, and most importantly- making tipping essential instead of optional. After COVID-19, along with the rise of tech in many stores, came automated tipping: when automatically picked tips from 10% to up to 30% percent would be the only options available, or in most cases, the easiest to access and choose. Because of the popularity of many tech companies such as Square and Toast, shops are now able to easily charge large tip values with just the tap of a finger. Walking into a coffee shop today could have many new policies regarding payments. Not accepting cash, charging higher prices for simple foods or drinks, and automated tipping. Even though it only takes a few taps to decline certain types of automated tipping, many consumers frequently experience “guilty tipping” where they feel compelled to leave a larger tip than they would like. When faced with the prospect of tapping the “No tip” button and having to make eye contact with the cashier, some individuals may feel emotionally vulnerable and uncomfortable in a public setting, resulting in the phenomenon of “guilty tipping.”

Impacts on Workers

Looking at it from a different perspective, with the recent financial improvement of many companies after COVID-19, restaurants have stopped offering deliveries and instead there has been a resurgence of contactless deliveries by companies like UberEats, DoorDash, etc. Now millions of self employed workers are getting less and less money through tipping. Amidst the COVID-19 pandemic, the contributions, labor, and dedication of delivery personnel were widely valued as they braved the inherent risk involved in transporting meals or packages. In response, customers frequently offered a larger gratuity than what was initially anticipated, as a token of appreciation for the essential service provided by these workers. The value of tipping increased during the peak of the virus, when deliveries were most wanted. But nowadays, the behavior of consumers has changed into putting less weight in tipping. Now, workers are receiving less and less for their effort and work, representing the change of mindset many consumers have adapted to. This has resulted in delivery service drivers barely making their ends meet. Should workers be receiving a fair share of tips for every delivery? Should the delivery companies take responsibility for their workers’ well being? Or should the government step in and create a safety net for these workers to fall back on in times of desperation? 

In all, tipping around the world has had many positive and negative impacts on our society, from cashiers to delivery workers; a quick tap of a button could be an important decision to make.