I've never lived anywhere where I would use a taxi regularly so I can't speak on that and I cut my own hair. I do tip very well for good service at bars and restaurants though. Good service for a waiter will earn a minimum of 15% from me and I usually tip at least a 50 cents to a dollar every time I order a drink maybe more if I am ordering multiple drinks. I know the concept is a bit odd for people in countries that don't do it but it is a very important part of the food and beverage industry here in the U.S. The market is very saturated and a owner/manager has to put a premium on good service. By having servers make more than 90% of their wages from tips it lets the business keep its overhead lower and offer a much more competitive price for their goods. It also rewards hard work and motivates the server to give the best they can. As a former bartender and bar manager I really can't imagine what I would have had to pay to keep my best people not to mention what I would have to charge the customer to offset the increase in overhead. Not sure what its like in other countries but typically bartenders and waitstaff are college and highschool students who can only work a few hours a day and need the compensation to pay bills while they attend school. I look at it as paying the owner for the product and the server for the convenience which in turn provides me with a cheaper product and better service.