Billionaire hedge fund manager Bill Ackman said he clashed with Uber’s CEO after his cab drivers accused the ride-hailing app of not allowing them to collect tips.
Ackman, founder and CEO of Pershing Square Capital Management, wrote on his social media account X on Wednesday that he ordered a Manhattan yellow cab via the Uber app because he thought “it’s a good thing that Uber is supporting taxis.”
“When I asked the driver about his experience with Uber, I was shocked to hear that it was terrible,” Ackman wrote to X’s more than 1.2 million followers.
Ackman said the driver told him that even if the passenger tipped, Uber would “keep the tip for themselves.”
“When I told him that wasn’t possible, he asked me to try it,” Ackman wrote to X. “When the ride was over, I added a $5 tip. His screen showed that I hadn’t paid a tip.”
Ackman wrote that the drivers were right and that Uber was “sigma-inflating its margins and profits” in New York by “ripping off New York taxi drivers.”
Ackman then texted Uber CEO Dara Khosrowshahi a screenshot of a summary of the trip, though Khosrowshahi didn’t reply, Ackman said.
“I like Dara, but this is really bad,” Ackman wrote. “I can’t help but think Dara isn’t aware of this.”
He demanded that Uber “immediately return the stolen funds with interest to taxi drivers in New York City and other drivers in other markets engaging in similar conduct” and that the company “profoundly apologize.”
Ackman also called on Uber to “recalculate its earnings to reflect the overestimation of margins and profits.” He then tagged New York City Mayor Eric Adams in the post, adding, “I’m sure he would agree.”
Uber’s communications team responded to Mr. Ackman with an[es] 100% of tips are paid to Uber’s taxi partner, Curb, and are “generally required to be given to the driver within one day.”
“The tip is not being displayed on this screen because the passenger paid the tip after the trip ended and this screen does not update,” an Uber representative wrote to This is why you may see “After your trip is complete” and “Please check your travel history to see your final total amount.”
“This is not so obvious to taxi drivers,” an Uber representative said, adding, “This is a relatively new product for us, and we will work with our partners to improve this screen.”
Ackman thanked the Uber representative for the clarification, but added, “That being said, I tipped first and then the driver’s screen that I photographed appeared.” ” he added.
“Drivers are convinced they are not being paid and have no ability to audit whether passengers have tipped them,” Ackman wrote.
“This seems like an easy problem to solve,” said the hedge fund manager.
The Post has reached out to Uber, Curve and the mayor for comment.
In 2022, Uber partnered with Curb and CMT to allow customers in New York City to order yellow cabs using the Uber app.
Uber’s arrival in New York in 2011 disrupted the city’s taxi industry and financially ruined many drivers, especially those who had taken out huge loans to purchase taxi medallions, which cost more than $1 million.
Taxi usage has surged in New York during the pandemic as commuters avoid public transportation.
After battling the taxi industry in several jurisdictions around the world over the past few years, Uber has now reversed course and partnered with the taxi industry in New York and other countries.
