Before the widespread adoption of digital payments, service industry workers, such as delivery riders and gas station attendants could expect to earn up to Dh1,500 per month in tips, even though tipping is not mandatory in the UAE. However, with the transition to cashless transactions, this figure has dropped to as low as Dh 200 per month for some workers.
One delivery rider, who has worked in the UAE for 7 years, has observed a clear change in payment methods and customer interactions. “Nowadays it’s very rare when someone pays with cash; it’s often with a card and sometimes I don’t even meet the customers as they leave the orders at the door, so interactions with customers have slowed down as well,” he told Khaleej Times.
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“In the first few years, I made a decent amount from tipping, but now it’s very rare.” The driver further explained that tourists may still tip because they usually have cash on hand.
Amir, a gas station worker, has also experienced a decline over the years. “Back in the day, I would get Dh80 to Dh100 in daily tips, especially during the summer. But nowadays, it’s very rare.” He added that customers often search for spare change to tip, but usually without success.
There is no standard amount for tipping in the UAE, nor is there any consensus regarding what the ideal tip is. Some people round off the bill, while others pay 10 to 15 per cent.
Amid digital payments, some residents still take an additional step to continue their tipping habit. Mohammed Bushra, a Sudanese expat working in the food and beverage industry, understands the importance of tips for staff, and tries to always have cash on hand.
“I always make sure I have cash on me. Tips mean a lot to riders and waiters, so I make it a habit to withdraw some,” he said. Bushra believes that even with the rise of digital payments, having cash on hand can be valuable for tipping and other emergencies.
Inas Harbi, a Lebanese resident of Al Ain, shared a similar opinion. “I would not have cash on me for months, and I would always feel guilty when I wanted to tip but could not” she said.
Harbi’s perspective has changed. “But I started having small amounts in my wallet because my kids always want to visit the grocery store and buy themselves treats,” she said.
This habit of regularly visiting grocery stores has encouraged Harbi to keep some cash in her wallet. “Since then, I’ve had enough cash to tip the people who deliver food to me and others,” Harbi added.
While delivery apps and restaurants have embraced digital payments, some have recognised the need to facilitate tipping through their platforms.
Gyanendra Prasad Kar, Founder and Manager of Indian Delights, said, “Nowadays, tipping is easier through applications, as it is included in the billing process, unlike cash payments where customers may not have exact change.”
He also noted that card swiping machines are equipped with a tipping system, which is conveyed to the customers who dine at the restaurants.
He acknowledged that, however, customers may sometimes forget to tip the waiter, realising only after swiping their card.
To address this issue, Kar suggested that businesses could play a role by ensuring that their payment systems have clear prompts for tipping. In addition, businesses can mention tipping on their menus or within the restaurant to remind customers to tip their waiters.
Rohit, a waiter at Indian Delights restaurant, noted: “If there is a decrease, it may be because machines prompt the customer to tip right after their bill payment, which may differ from the tip they would have given with cash. Earlier, when a customer paid with cash, the change they received post-billing would often be set aside as a tip,” he explained.
Due to a recent technical outage, many UAE residents returned to cash for daily transactions. The massive tech crash that swept the world on Friday, July 19 was a wake-up call not only for governments and businesses but for individuals also.
Those who were out shopping, refilling their tanks, or paying bills could not do so because the outage disrupted various sectors. Some residents said that the incident taught them the importance of always keeping cash on hand.