May 13, 2012

The $144,146,165 Button

The average New York City taxi cab driver makes $90,747 in revenue per year. There are roughly 13,267 cabs in the city. In 2007, NYC forced cab drivers to begin taking credit cards, which involved installing a touch screen system for payment.

During payment, the user is presented with three default buttons for tipping: 20%, 25%, and 30%. When cabs were cash only, the average tip was roughly 10%. After the introduction of this system, the tip percentage jumped to 22%.

Those three buttons resulted in $144,146,165 of additional tips. Per year. Those are some very valuable buttons.

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Joshua Gross is web designer and developer, and principal of Planetary based in Brooklyn, NY.