Ridesharing

A New Device Will Help Uber Drivers Collect Tips

A new device wants to make it easier for ridesharing customers to tip their drivers.

According to TechCrunch, Pax is a seatback system that accepts tips in cash or credit card form. Its creator is currently looking to raise $50,000 on Kickstarter to launch the business.

While many taxis already allow riders to tip with their credit card, Uber users pay directly through the app, which doesn’t allow its customers to add a tip (Lyft and other rideshare services do offer this option). So if a rider doesn’t have cash on hand, that means the driver simply doesn’t get a tip.

Azarias Reda, who created the custom Android build with a card reader and strong box with a slot for cash, made Pax specifically for his uncle, who is a full-time Uber driver. It’s important to note that the system is only for tips — customers would still pay for their rides through the app and then make a separate transaction for the tip through Pax.

While Reda’s uncle pulled in about $10-20 in cash per day, a test run of the system in Washington, D.C., found that more than half of the tips collected were on credit cards.

With that in mind, the plan for Pax is a flat three percent fee on all transactions, with only the driver and the payment processor making any money off the tips. Drivers can buy the box for about $100. TechCrunch noted that while a processor hasn’t been chosen, Square or PayPal should be able to make that three percent fee a reality.

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