Former Uber driver and Vugo cofounder James bellefeuille has launched a Vugo bitcoin tipping service for Uber drivers, to enable customers to tip the drivers using bitcoin, instead of cash.

Uber, American international transportation Network Company currently valued at US$ 50 billion by the Wall Street Journal and many Venture Capital Firms worldwide, has always had unresolved issues with its drivers – tipping.

The billion dollar network has never enabled its drivers to accept tips through its app, which became a significant disadvantage for its drivers. Especially now, that most of Uber’s customers and user base are those seeking for a better quality and higher standard taxi service.

This month, Vugo, rideshare advertising network has released a new feature – a bitcon tipping system for Uber drivers.

According to CNET, over 3,000 Uber drivers already have installed Vugo’s tablet, which is placed at the backseat of the cars. Apart from advertisements, customers will now see a tip your driver button, which allows users to tip the drivers using bitcoin.

Vugo co-founder James Bellefeuille told CNET news, “Creating a way for Uber drivers to accept tips electronically seemed like a natural expansion.”

Tips usually come in at relatively small amounts, in the range of a few dollars to a hundred dollars at best. Using traditional financial platforms or online mobile payment systems like Paypal is highly inefficient, because of its high transaction / conversion fees and their tendency to freeze payments at their will.

The bitcoin tipping system may be crucial to Uber drivers, especially now that Uber has decreased fares in 48 cities across the United States. The updated fares have decreased average earnings per hour of Uber drivers, from US$36 to US$19.

“Uber is trying to change the culture around tipping service professionals. The biggest reason why tipping is important is because your driver is delivering a service,” explained Bellefeuille.