American hedge fund billionaire William “Bill” Ackman recently slammed Uber for ‘stealing’ tips from its drivers, before retracting his statement after getting a clarification from the ride hailing giant.
Bill Ackman, CEO of Pershing Square Capital Management, said that he took an Uber ride in New York City on May 23. The Uber driver complained about the company keeps drivers’ tips for itself. “He explained that even when the passenger agreed to pay a tip to the driver on the Uber app, the driver did not receive a tip and Uber kept the tip for itself,” Ackman recalled.
The billionaire put the claim to test by adding a $5 tip for the driver when his ride finished. “His screen showed that I paid no tip,” he wrote. Ackman slammed Uber for not passing on tips to its riders. “Uber is massively increasing its margins and profits in NYC by ripping off NYC cab drivers,” he wrote.
The hedge fund billionaire then texted the CEO of Uber, Dara Khosrowshahi, about the issue but did not immediately receive a response. “I texted Dara from Uber midday today and sent this photo of the driver’s screen. He did not respond. I like Dara, but this is really bad. I can only assume that Dara is unaware of this. Uber needs to immediately return the stolen funds with interest to the NYC taxi drivers and to other drivers in any other markets where they are doing the same and they should deeply apologize,” he wrote on X.
Ackman’s post on X drew a response from Uber. The company, responding from its official account, explained that all tips are passed on to the drivers, but sometimes do not show up on their screens.
“We pass 100% of the tip to Curb (our taxi partner), and they are required to pass the tip to the driver, usually within a day or so. The tip isn't showing on this screen because passengers tip after the trip ends, and this screen doesn't refresh,” Uber explained. The company acknowledged that the feature is “not as clear as it should be for taxi drivers.”
“This is a relatively new product for us, and we'll work with our partners to improve this screen,” Uber explained.
Ackman acknowledged the statement and pointed out that a fix should be deployed as soon as possible because Uber drivers believe their tips are being withheld.
A day later, he posted an update saying he had heard back from the CEO of Uber.
“I was glad to learn from Uber that the drivers are receiving their tips. That said, the taxi drivers themselves believe that they are not receiving them because their dashboards show no tips from Uber riders,” he wrote. “I spoke with Dara today and he confirmed that a fix is immediately underway. As I said in my initial post on the subject, I am an Uber and Dara fan and am confident that this will be rectified shortly.”
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