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i disagree. in both systems it costs you the same, but clearly it affects the driver unequally. stiffing a driver entirely makes a huge difference to the driver in one system and has a very small effect in another. relatedly, if waitress wages went up to $7/hr it would be reasonable to have nyc standard tips go back below 20%


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Tipping less puts an upward pressure on wages.
But paying higher wages doesnt put a downward pressure on tipping habits, because consumers generally dont know how much the employees are getting paid.


Which is why wages in the service industry are relatively low, and why governments dont enforce min wage laws for service related jobs.



For jobs like driving cabs, a better system needs to be worked out. With GPS technology as it is, there's no reason why fares cant be completely standardized and made into flat fees. And with that, you can raise the base wages of the cabbies and eliminate tipping, which would be in everyones best interest (except people who dont tip).