New York’s Taxi and Limousine Commission’s (TLC) position on tipping within ride-hail apps has prompted Uber to add the feature to its application.

Uber recently announced an in-app feature for tipping in now available in Houston, Minneapolis and Seattle and will launch across the U.S. this summer.

The decision by Uber came in advance of a July 13 TLC hearing on rule changes. One of the rules the TLC is advocating is the addition of in-app tipping options similar to those in the taxi industry. New York’s TLC proposed the changes in April.

The tipping feature offers a choice of preset dollar figures, though users can also customize the tip.

Uber, which has often battled governments over regulations, changed course on tipping just weeks before the TLC hearing.

TLC’s proposed rule would apply to the for-hire vehicle sector, which provides prearranged rides and includes ride-hail, community livery and black-car services. The TLC's proposal is that passengers must be allowed "to tip drivers using the same method of payment that passengers use to pay for the fare."

Rival services Lyft and Juno already provide in-app tipping. Uber has long preferred a seamless user experience and resisted adding a gratuities option despite increasingly bitter opposition from drivers. The TLC's rule-change proposal followed a campaign and petition by the Independent Drivers Guild demanding the tipping feature.

Uber announced the new option as part of a promotional campaign to improve relations with drivers. The company said it would be making "meaningful changes and improvements to your driving experience" over the "next 180 days (and beyond)."

The Independent Drivers Guild took credit for making it happen.

"Today's tipping announcement is an important win for drivers and proves that thousands of drivers coming together with one voice can make big changes," said guild founder and Machinist Union official Jim Conigliaro Jr. "Cuts to driver pay across the ride-hail industry have made tipping income more important than ever. Make no mistake: Uber only did this because members of the Independent Drivers Guild pressured regulators."

The TLC had a positive response to Uber's decision.

"We are gratified to see that Uber has apparently fully embraced the rules we recently proposed, which, among other provisions, would mandate that in-app tipping be a nonnegotiable requirement," TLC said in a statement. "We are also pleased to see Uber say that all tips would be going to the drivers, as our rules would require. We look forward to hearing from both drivers and the riding public at the TLC's scheduled public hearing."

One dynamic the company will have to address is the psychology behind the Uber experience.

In the current model, the driver and rider conclude a successful business exchange and both leave in a positive mood. Drivers are able to rate riders, which makes them more appealing to future drivers. The money exchange is nearly invisible.

With tipping introduced, research shows that the introduction of money into the process makes people more anti-social and less willing to depend on others.

The more practical tipping issues may diminish the customer experience. Will some drivers lobby for higher tips? Will riders fear a low rating because of what is perceived as an inadequate tip?

Harry Campbell, an Uber driver who runs the blog TheRideshareGuy, says he tested out the tipping option as soon as it rolled out and found out that tipping and ratings will not be linked.

“Drivers won't be able to see whether or not a passenger has left a tip until after they leave a rating for the passenger — so passengers don’t need to worry about getting low ratings for not tipping,” Campbell told Recode. “It’s been this way before/after tipping.”

The tipping is being rolled out as part of Uber’s 180 Days of Change campaign aimed at improving driver conditions.

"These drivers are our most important partners, but we haven't done a very good job honoring that partnership," said Rachel Holt, Uber’s regional general manager in the U.S. and Canada. She is part of the leadership team running Uber after Kalanick’s departure.