Vugo launches new feature for Uber drivers to accept tips electronically

Vugo, an in-car advertising company launched a new feature on Aug. 7 that allows Uber passengers to leave tips for driver with the tap of a button. More than 3,000 Uber drivers are now using Vugo by displaying its app on a tablet, which is fitted in the rear seat of their cab.

Passengers can now see an option named, “tip your driver” on the lower left corner of the Vugo app, reports CNET. "Creating a way for Uber drivers to accept tips electronically seemed like a natural expansion," the publication quoted Vugo co-founder James Bellefeuille, as saying.

Until now, passengers could tip Uber drivers with cash as Uber’s service connects passengers with drivers through a smartphone app and the transaction is completely cashless. Drivers working with Uber have been pushing the company to include a gratuity feature to its app. Nearly 15,000 Uber drivers signed a petition in February, urging the company to update its app with a tipping feature.

Uber’s rival, Lyft practices a different method. The company allows its passengers to add tips to their trips. Last month, Lyft teamed up with Starbucks that allows riders earn Starbucks "stars" on its loyalty app and even tip drivers with them, reports Business Insider. While Lyft is coming up with various initiatives to tip its drivers, Uber is apparently showing no signs of updating its app with a gratuity feature.

In an attempt to discourage the usage of Vugo’s app, Uber had warned its drivers that they could be banned if they displayed the Vugo’ advertising app during rides, reports BuzzFeed. Despite the issues between Uber and Vugo, the advertising app company still continues with its tipping feature. Passengers willing to tip Uber drivers can click on the "tip your driver" button, after which they will be asked for their email address and the amount they intend to pay as tip. After following this process, passengers will receive an invoice that they can pay at their convenience, CNET reported.

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