UPDATED: The Tipping Point

"We were having no problem," says Dave, a driver for the company who gave SFR a lift around downtown Santa Fe but preferred not to use his last name for publication.

Despite a flap with the Public Regulation Commission, the ride-sharing service has operated in Santa Fe and around New Mexico for years. In November 2014, Mayor Javier Gonzales became the first person in Santa Fe to use Uber when he took a short ride from City Hall to the Plaza to introduce and publicize its arrival to the city.

The new law, signed on March 9, intends to resolve confusion about these companies and their operating requirements in New Mexico. The governor says she favors the law change because it has the potential to motivate Lyft (one of Uber's competitors which vacated the state in 2015), and companies like it, to reconsider the state.

The law holds ride-sharing services to their own set of standards, however. It requires drivers to undergo background checks and maintain insurance, and companies must spend $10,000 for a permit. It does not require that Uber drivers be drug-tested, even though their taxi-driving counterparts must undergo those tests.

The discrepancy in drug-testing requirements between the transportation companies is not the only one. "City policy does require each Uber driver to get a business license," says Matt Ross, city spokesman. "As far as cab companies are concerned, each cab company just needs a business license, not each cab driver."

But city officials also say they can't rapidly query the business license database to determine how many, if any, Uber drivers have taken that step.

Santa Fe's sole cab company, Capital City Cab, has been operating taxis regulated by the state Public Regulation Commission for more than 30 years. Shortly after Uber appeared in the City Different, the company launched its own app that potential passengers can use to hail a cab. Capital City Cab also participates in DWI prevention efforts by offering rides from bars at discounted rates on Friday and Saturday nights. Knowles did not reply to SFR's request for comment this week.

Heather Vandagriff, a lifelong New Mexican and regular Uber rider, tells SFR she prefers the new option over traditional cabs. "It's cheaper, it's easier and it's faster," Vandagriff says. "I think it helps cut down on drunk driving, a lot," she added.

Drivers generally report that working for Uber is flexible and can help fill in the gaps.

"It's the freedom," says Joshua Milelkowsky, who started driving for the company in Santa Fe in February. "I go online whenever I want, and work like an hour or two hours and go home. So, it's the fact that I can do that, and it's my call. It's not a set schedule."

But one reason people perceive Uber as cheaper is because they're often leaving out an important part of the cost. Milelkowksy says the profitability of the venture fluctuates. Uber drivers use their personal vehicles and pay for their own gas. The company sets the fare and takes a significant chunk of every transaction, recently upping their percentage from 20 to 25 percent, he says.

Uber drivers don't get tipped by the automated payment system, and the app does not feature a way to add a tip digitally.

And Uber itself appears to discourage—at least not encourage—the practice.

"You don't need cash when you ride with Uber," its website states. "Once you arrive at your destination, your fare is automatically charged to your credit card on file—there's no need to tip."

Tipping, Milelkowsky says, is "not required, but it is appreciated." .

This lack of certainty about tipping etiquette shows in both drivers and riders. Some drivers tell riders they can't accept a cash tip, while Dave says, "If half of the riders put in a dollar or two, you have all your gas taken care of for a night."

Vandagriff tells SFR she tips "sometimes, if I have cash on me."

Ben Grossklaus, who uses Uber frequently in Albuquerque, says, "I think that's something Uber has tried to work on, and I don't know, I feel like it's almost a gray area, but personally, I do not tip."

Representatives of Uber and Lyft did not respond to SFR's requests for comment for this story.

Santa Fe Reporter