The decision came about following a campaign by the Independent Drivers Group, which is not a union but is affiliated with the union that represents livery drivers in NYC.
Uber has said previously it opposed tipping because it was an inconvenience to passengers and slowed the transaction between rider and driver.
When Uber launched, one of its purported innovations was that there is "no need to tip", but after the company dropped fares and restructured the way drivers are paid, a number of drivers began to cry foul - especially since Lyft and Juno, another competitor, allow in-app tipping. Some of those services are reserved over the phone or by company voucher. It involves a 30-day period for public comments, a hearing and a vote by the TLC board of commissioners.
Any tipping proposal faces a protracted process before it becomes a rule Uber must follow. So basically, even services that accept payments exclusively through credit cards, will be forced to add an option that will let drivers accept tips through the same channel.
IDG raised the concern with Uber in June.
This induces some guilt, because everything points toward the fact that Uber has been able to get me such cheap rides around town partly through aggressively screwing over drivers.
The court passed the order after the two companies informed it that efforts to settle dispute with the two unions - the Sarvodaya Driver Association of Delhi (SDAD) and the Rajdhani Tourist Drivers' Union - through mediation had failed. Though tipping is permitted, many riders don't carry cash, or don't feel compelled to dig around in their pockets once the ride is done. The interface wouldn't ask you to tip immediately after a ride, but rather users would have to manually select find their last ride.
The IDG based its tip-revenue projections on the fact that nearly all taxi passengers tip, and most tip 20%. In Uber's case, this would involve adding a tipping feature within the its smartphone app.
They also want that these taxis be run according to a Delhi government authorised meter, which should be certified by Standardisation Testing and Quality certification (STQC).
"Uber is always striving to offer the best earning opportunity for drivers and we are constantly working to improve the driver experience", Alix Anfang, a spokeswoman for Uber, said in a statement to The New York Times.
New York City is on its way to mandating that Uber allow tips.
Conigliaro, Jr. said on a call with press that the in-app change would provide much-needed income for drivers, at a time of fluctuating rates.