Passengers who add the tip when paying their taxi fare by credit card for a GetTaxi Ltd. cab should know that the company collects half of the tip. Although it may be convenient for passengers to pay the fare by credit card, it cuts into the drivers' their bread and butter - tips. On the other hand, GetTaxi does not collect the standard 3-5% clearing fee on fares from the drivers or passengers
GetTaxi Israel CEO Mark Oun told "Globes", "The company assumes the clearing fee, which totals NIS 200,000 a month, while half of the drivers' tips amounts to a few percent of this figure."
In early October, GetTaxi ceased charging the NIS 5.20 fee for ordering a cab in Israel, with the consent of the participating drivers.
GetTaxi said in response, "The sharing of the tip when paying the fare by credit card is arranged with the drivers, and benefits them, because this is how GetTaxi compensates for being the only company in the field that assumes the costly clearing fee for drivers and passengers charged by the credit card companies.
"Even after the alleged 50% deduction of the tip, this costs the drivers much less than they would pay for clearing fares (and costs the company more than it receives in tips). It is utterly absurd to present the company as a company that allegedly takes tips, instead of appreciating the fact that it fully absorbs the expensive clearing costs, which are several times greater."
Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2013
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