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Ep. 118 - The Snitch Economy: How Rating Apps and Tipping Pit Working People Against Each Other

Waiting tables. Bartending. Hospitality, food delivery, beauty salons, rideshare driving. The service industry, as anyone who has worked in it knows all too well, is notorious for relying on tipping to undercut employee wages and deputize individual customers to determine how much money a worker should be able to take home. Amid increasing recognition of these injustices, a number of campaigns and new laws surfaced, pre-pandemic, to abolish or meaningfully reduce the practice of tipping.

But despite the best efforts of these campaigns, tipping remains the industry - and American society - standard. Indeed, the perverse logic of tipping has broadened into an ever-present 'snitch economy' - an ecosystem of tactics like mystery shoppers and Uber and Yelp rating systems designed to police the behavior of workers while outsourcing the costs of said supervision to customers and other workers. 

In the process, our snitch economy pits those being surveilled against those doing the watching, and the judging. Through a ubiquitous public-facing network of rating and reviewing other people’s labor - and often the behavioral disposition they exhibit while working - people with otherwise very little power are elevated to temporary positions of authority over others, fostering a culture of surveillance rather than one of solidarity. The snitch economy serves the dual purpose of not only giving working people a false sense of power when they’re the ones being served, but also reducing millions of human interactions to opportunities for not only snap judgments, but subjective rewards and retribution.

In this episode, we detail how businesses in the service industry, bolstered by friendly media, use tactics like tipping, mystery shoppers, and ubiquitous ratings systems in order to turn us all into petty, mean, busybodies carrying out the agenda of capital with nothing to show for it but a fleeting sense of self-satisfaction. 

Our guest is writer, editor and agitator Vicky Osterweil.

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Guest

Vicky Osterweil is a writer and editor based in Philadelphia. She is a regular contributor to The New Inquiry and writing has also appeared in The Baffler, The Nation, The Rumpus, Real Life, and Al Jazeera. Vicky is the author of In Defense of Looting: A Riotous History of Uncivil Action, published in August 2020 by Bold Type Books.

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Show Notes

The Secret Shopper

Vicky Osterweil | June 4, 2012 | The New Inquiry

The Racist History of Tipping

Rev. Dr. William J. Barber | July 17, 2019 | Politico

'It's the Legacy of Slavery': Here's the Troubling History Behind Tipping Practices in the U.S.

Rachel E. Greenspan | October 15, 2018 | TIME

The Racist, Twisted History of Tipping

Maddie Oatman | May/June 2016 | Mother Jones

When Tipping Was Considered Deeply Un-American

Nina Martyris | November 30, 2015 | NPR

The American System of Tipping Makes No Sense 

Derek Thompson | October 27, 2019 | The Atlantic

Yelp is turning customers into managers

Joshua Sperber | May 5, 2019 | Salon

The Rating Game: How Uber and Its Peers Turned Us Into Horrible Bosses

Josh Dzieza | October 28, 2015 | The Verge

The Truth About How Uber’s App Manages Drivers

Alex Rosenblat | April 6, 2016 | Harvard Business Review

Shop and get paid: Mystery shopping makes comeback

Kyle Arnold | June 15, 2017 | Orlando Sentinel

Do Uber ratings let passengers discriminate against drivers? 

Aviva Rutkin | October 12, 2016 | New Scientist

How I Made $14,000 A Year Mystery Shopping 

LearnVest | March 1, 2013 | Forbes

Abolish Restaurants: A Worker's Critique of the Food Service Industry [PDF]

Prole | 2010 | PM Press

Consumer Racial Discrimination in Tipping: A Replication and Extension [PDF]

Lynn, Sturman, Ganley, Adams, Douglas & McNeil | 2008 | Cornell University, School of Hospitality Administration

In Defense of Looting

Vicky Osterweil | August 21, 2014 | The New Inquiry

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Transcript

For a full transcript of this episode, go here.

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Ep. 118 - The Snitch Economy: How Rating Apps and Tipping Pit Working People Against Each Other

Comments

Thank you for this. I was just talking to my wife about racism in tipping yesterday, so I feel some serious mystical synchronicity with y'all. I was telling her about when I was in college (~15 years ago) and I worked at a small Korean restaurant in Manhattan. It was "counter service" but I still brought food to anyone who dined in, bussed the tables, etc. People were "supposed to" bring their trays to the counter when done, but of course few did. I was the only person there other than the cooks who were all from Mexico and in the back, out of view of the customers like you talked about. The cokehead owner made me use a tip jar because it was "counter service" but he would show up occasionally yakked out of his mind and admonish me for the empty plates on the counter and the people waiting for their food, despite a line out the door. He would take cash out of the tip jar if there were too many plates on the counter. Anyway, naturally I became bitter at the customers who didn't tip, even though like you said it's the owner's fault, not their fault. The owner told me that "Asian people don't tip because of their culture." And whether or not this was even the case, I internalized this. For years, I would tip less when getting take out from chinese restaurants, justifying it by recalling my own experiences. It wasn't until I was 24 or so—as my mind was opening up more to the reality of the world—that I realized how racist that was, and that I was terrible for doing that. I considered myself "not racist" but I was still doing that shit. I regret this immensely and I feel guilty over it and wish I could go back in time and tip all those amazing asian cuisine workers what I should have. It was only a dollar or two here and there, a few percentage points, but I now realize how messed up that is. This episode really codified this for me so I thank you. The owner instilled in me such bitterness and nudged me to take it out on fellow workers instead of demanding that he simply place a sign that says "gratuity appreciated for dining in" and risk getting fired. My father was very conservative so I've had many realizations like this, and I have been trying to better myself for many years now. Your podcast has been essential in that, especially when you dive into an idea I have ruminated on previously. I appreciate you two very much. P.S. I tip everyone very well now regardless of race. The fact that I didn't before, even saying that out loud, it makes me hate myself, but it's the truth.

Because you did a humanities degree (specializing in semiotics) and it was the only way you could make a living? ;-)

Eoin O'Mahony

I was recruited by Panopto, and the name weirded me out. Why would you name an educational software company after a dystopian prison design?

Some of this I know started at least after reconstruction but the " tech economy" bothers me with this the most with sites and apps like Yelp and others. Its what I think is called capitalist survalleince and this is considered OK in our society because the logic goes , state tyranny is the greatest evil but private tyranny is the ultimate pinnacle of freedom.

Oh man, I hear that thing about Panopto. My partner is working at a university and preparing material using this set of tools. Not lost on her at all.

Eoin O'Mahony

https://libcom.org/files/Prole.Info-%20Abolish%20Restaurants.pdf

Cardboard

I’m gonna try and pool our tips at work see what my boss says

Alec

In addition to giving all the stars and saying so-and-so ...”gave incredible service they were kind, efficient and knowledgeable” I usually say something about how the survey that makes me responsible for spying on them so it lowers my opinion of the company in general because my time is precious and I’m being asked to fill out surveys gratis sometimes an hour a day. Also, the feedback from their employees about how the customers are treating them and about their suggestions and their working conditions is more valuable than any information that some random stranger off the street has to offer to their management. I also recently learned that when people fill out surveys, they are more likely to return to that company because surveys are an effective way of cheap advertising, which may be the ultimate reason for them. My best tips as a customer service or waitress was when I got added to the expense account at restaurants by customers who appreciated us and knew we didn’t earn enough to eat and pay rent. This was in the 1980s, it’s worse now I think. Also busboys and people who didn’t make much leaving a couple pennies on top, then hiding and watching you lift up a plate with all their dollars underneath. I try to pay back. Never snitch, unless someone is dangerous.


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