New York City claims that food delivery apps DoorDash and Uber Eats have been costing workers millions of dollars in lost tips due to changes made to their apps. According to a report from the city's Department of Consumer and Worker Protection, average tips for both apps fell significantly after the companies made design changes, with the current average tip sitting at just $0.76 per delivery. This represents an estimated $554 million loss in tip income for delivery workers, resulting in annual losses of around $5,800 per worker.
The agency alleges that Uber Eats and DoorDash moved tipping prompts to after checkout, making it harder for customers to leave tips on time. "Under Mayor Mamdani, the biggest corporations in the world will no longer be able to rake in record profits on the backs of workers and consumers," said DCWP Commissioner Samuel A.A. Levine.
DoorDash has pushed back against the claims, stating that no money has been stolen from Dashers and that customers have not been misled. The company has also launched a webpage criticizing the report's findings, saying that moving tipping to after checkout is how it works in many areas of life. However, the agency points out that DoorDash had previously suggested this approach in a 2022 study.
The DCWP plans to begin enforcing new amendments to the city's delivery worker laws, which require food delivery apps to give customers clear and user-friendly options to tip delivery workers. The changes come as DoorDash and Uber Eats have sued the city over these regulations, with the court set to issue a ruling that could impact when the law takes effect.
The dispute highlights ongoing tensions between food delivery companies and workers in New York City. In 2022, the state Attorney General's office reached a $16.75 million settlement with DoorDash over allegations that the company had misled customers and workers about how tips were handled.
The agency alleges that Uber Eats and DoorDash moved tipping prompts to after checkout, making it harder for customers to leave tips on time. "Under Mayor Mamdani, the biggest corporations in the world will no longer be able to rake in record profits on the backs of workers and consumers," said DCWP Commissioner Samuel A.A. Levine.
DoorDash has pushed back against the claims, stating that no money has been stolen from Dashers and that customers have not been misled. The company has also launched a webpage criticizing the report's findings, saying that moving tipping to after checkout is how it works in many areas of life. However, the agency points out that DoorDash had previously suggested this approach in a 2022 study.
The DCWP plans to begin enforcing new amendments to the city's delivery worker laws, which require food delivery apps to give customers clear and user-friendly options to tip delivery workers. The changes come as DoorDash and Uber Eats have sued the city over these regulations, with the court set to issue a ruling that could impact when the law takes effect.
The dispute highlights ongoing tensions between food delivery companies and workers in New York City. In 2022, the state Attorney General's office reached a $16.75 million settlement with DoorDash over allegations that the company had misled customers and workers about how tips were handled.
. I mean, come on, it's not like DoorDash didn't already try this thing out in a study back in 2022 and now they're all like "but we did it for other areas of life"... no, you basically changed it because you want to keep more of the tips for yourself 
. And now the city is stepping in and making them change their ways? About time 
. I'm all about supporting our workers and giving them a fair shake 
.
i was just on door dash and it cost me like 5 bucks for a pizza... anyway so yeah these companies are making loads of cash but they're taking advantage of the workers 
and btw has anyone else noticed how expensive food is in nyc?! 
this is so unfair 
door dash and uber eats making millions off us workers and now they're trying to cover it up? 
i mean, come on, a dollar and 76 cents per delivery is literally peanuts 
they need to be held accountable for their actions. and now they're suing the city over regulations? that's just typical corporate greed 
we need to stand together as workers and demand fair treatment from our employers.
. I've been using DoorDash and Uber Eats for a while now, and it always seems like the tipping is way after you've already finished your meal 
.
. Maybe the court will rule in their favor and we'll all just have to suffer through subpar tips forever 
.
! They're basically taking advantage of their drivers by making it hard for customers to leave tips on time 
. And now they're making millions off our back...I mean, labor 
. I feel bad for the workers who are losing out on thousands of dollars per year 
and maybe some accountability 
.
I mean, who does that? making it harder for customers to leave tips on time by moving them to after checkout? it's like they want to take advantage of people while still pretending to be all about customer satisfaction 
and on top of that, they're suing the city over regulations? 
come on guys, do what's right for once 
and now they're trying to shift the blame saying customers are supposed to tip after checkout... please! who does that?