It doesn't matter if 10% of users quit using it if the stolen tips from the other 90% more than cover it. And where are you going to run? The competition isn't any better.
I think that's very cynical perspective. Probably you are correct, but if they were all corrupted, I could try starting my own. I'm probably naive but I still believe being ethical and profitable at the same time is possible.
being ethical and profitable is possible, but competing against the unethical is another matter.
if a company keeps the tips they can charge lower prices. just like some restaurants pay lower salaries when waiters can rely on tipping (which is why i consider tipping itself to be unethical)