Uber recently posted a response to the controversy surrounding their stand on tipping drivers on their official blog. According to the company, "tipping is not included, nor is it expected or required. Riders and drivers to know for sure what they would pay or earn on each trip - without the uncertainty of tipping."

As stated in a report from CNBC, this comes right after Uber proposed a $100 million settlement that the company reached in California and in Massachusetts.

Uber was criticized because they stated there was no need to tip but did not clarify that this did not mean the final payment did not include a tip for the driver. For this reason consumers were confused and would get angry at Uber drivers asking for a tip, unaware that a tip was not included in the final amount charged to the rider.

The report points out that Uber's new blog post states riders are free to tip their drivers if they want to, giving cash tips before stepping out of the vehicle, but are not required to do so. The company also clarifies that the Uber app will not be featuring a tipping function and cites two reasons for taking this stand.

According to the company, tipping may cause the drivers to focus entirely on riders from wealthier neighborhoods as they expect to get higher tips. The second cited reason is racism -- according to Uber, there have been studies were riders give higher tips to white drivers and significantly lower tips to black drivers.

Business Insider reports that Uber has begun emailing Uber riders in different cities to clarify their policies regarding tipping. The New York City Uber general manager, Josh Mohrer, also stated in an email to New York City riders that the main benefit of Uber is that it is hassle-free and that the company aims to keep it this way.