Glossary · Billing
Gratuity
Updated
Most operators add gratuity automatically at 15 to 20 percent of the base rate, rather than leaving it to the passenger at the kerb. It is the chauffeur's money, collected by the company, and it appears as its own line on the confirmation and the invoice so the customer is not surprised.
In the trade, gratuity is part of the pay model. Drivers on a percentage split count on it, and a corporate account that insists on a 20 percent fixed gratuity is more attractive than one that leaves it open. Whether gratuity applies to tolls, parking and wait time is a house rule, and it varies, so the calculation needs to be explicit.
The common mistakes are compounding it and double-charging it. Gratuity calculated on a total that already includes gratuity is a quiet overcharge. A passenger who tips cash on top of a prepaid gratuity will complain when they see the statement. Show it clearly and calculate it once.
How liverybook handles it
Gratuity is a separate component of every leg: leg total = base rate + gratuity + tolls + parking + wait time charge + extras − discount. It is recorded on the BookingTrip and flows into the invoice line when the leg completes, so the customer's receipt and the driver performance report both show it on its own. Payments are posted as transactions, which are the single ledger for money movement, and balance due is always recomputed from them. See billing.
Related terms
This term lives in Billing. liverybook is the operating system for ground transportation.