DoorDash and Uber underpaid New York City delivery drivers over $550 million in tips.
'15.01.2026'
ForumDaily New York
New York authorities have accused DoorDash and Uber of depriving couriers of hundreds of millions of dollars in tips after changing their app interfaces. This follows the introduction of new pay standards for delivery workers. Audacity tells in more detail.
Companies have moved tipping prompts to less prominent locations in apps. This follows new pay requirements for couriers that came into effect in December 2023.
During that period, apps increased service fees for customers to compensate for rising wages, and the tipping feature was moved to the post-order stage. This was done to make the estimated delivery cost appear lower.
DoorDash and Uber react
A DoorDash representative called the Department of Consumer and Labor Protection's report "completely inaccurate." He asserted that the company's couriers always receive 100% of tips left through the app.
"Moving tipping to the post-order stage isn't a new development or something malicious. This is how tipping works in many areas of life," John Horton, DoorDash's head of public policy for North America, said in a written statement.
He noted that "forced tipping is effectively tantamount to a tax." The decision on monetary compensation should rest with consumers, not politicians. Especially after customers have already paid for the multi-billion dollar increase in workers' incomes.
A sharp drop in tips
According to a report published on January 13, just one week after the changes were implemented, the average delivery tip on both platforms fell from $3,66 to $0,93.
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Over 18 months, this resulted in a loss of $554 million in tip revenue, averaging about $5800 per delivery person per year.
During his election campaign, Zohran Mamdani actively advocated for improved working conditions for couriers. Almost immediately after taking office, he signed an executive order targeting hidden fees and misleading subscriptions. The document directly mentioned Uber and DoorDash.
New requirements for delivery services
Mamdani's initiative continues a series of labor reforms initiated under former Mayor Eric Adams, including amendments to the city's delivery laws.
These changes require apps to offer more visible options for monetary rewards, including the ability to leave a tip during checkout and offering a flat 10% tip.
Lawsuit against the city
DoorDash and Uber have filed a joint lawsuit against the city in an attempt to block new requirements set to take effect on January 26.
The companies argue that the new rules violate their right to free speech, guaranteed by the First Amendment to the U.S. Constitution. They believe the laws force them to "promote and indirectly support the city's preferred message," according to court filings.
DoorDash and Uber jointly sued the city to block the requirements, which take effect on January 26, claiming they violate their First Amendment rights to free speech. In their lawsuit, the companies claimed the laws force them to "promote and implicitly support the city's preferred narrative."
