New York City regulators are cracking down on food delivery giants Uber Eats and DoorDash, accusing them of deliberately designing their app interfaces to discourage customers from tipping workers. According to a report by the Department of Consumer and Worker Protection, these "design tricks" have resulted in a loss of over $550 million in tips for the city's delivery drivers over the past two years.
The changes came as a response to new minimum wage rules that took effect in December 2023, requiring companies like DoorDash and Uber Eats to pay their drivers a higher wage. In an effort to avoid these increased costs, the companies allegedly made it more difficult for customers to offer tips on the apps.
For example, DoorDash now requires customers to add a tip after they have been assigned a driver, rather than allowing them to do so before checkout like other apps. As a result, the average tip for DoorDash and Uber Eats drivers in New York City has plummeted from $2.17 per delivery to just 76 cents.
The report also found that both companies are using tactics to discourage customers from tipping, such as telling them that prices for orders are "set by an algorithm using your personal data." This can make customers feel like they're being charged extra for services they didn't request, rather than providing a genuine opportunity to show appreciation for the driver's work.
The findings come as Mayor Zohran Mamdani signals a willingness to take on big business and protect the rights of workers. Commissioner Samuel Levine, who worked in the Biden administration for the Federal Trade Commission, is leading the charge against DoorDash and Uber Eats.
"We will no longer allow corporations to rake in record profits on the backs of workers and consumers," Levine said in a statement. "If these companies do not follow new tipping laws going into effect later this month, they will face significant consequences."
However, both DoorDash and Uber Eats have pushed back against the allegations, with DoorDash calling them "false" and claiming that food delivery workers earn nearly $30 an hour. A spokesperson for DoorDash also argued that forcing people to tip may be akin to a tax.
The report's findings are being closely watched by advocacy groups, who see it as a major victory in their efforts to protect the rights of city workers. "This is a new era where we have a mayor that will stand with the deliveristas and use all their power to hold them accountable," said Ligia Guallpa, co-founder and executive director of the Worker's Justice Project.
As the rules on tipping take effect later this month, it remains to be seen how DoorDash and Uber Eats will respond. One thing is certain, however: the city's regulators are not going to let these companies get away with manipulating their app interfaces to cheat workers out of hard-earned tips.
The changes came as a response to new minimum wage rules that took effect in December 2023, requiring companies like DoorDash and Uber Eats to pay their drivers a higher wage. In an effort to avoid these increased costs, the companies allegedly made it more difficult for customers to offer tips on the apps.
For example, DoorDash now requires customers to add a tip after they have been assigned a driver, rather than allowing them to do so before checkout like other apps. As a result, the average tip for DoorDash and Uber Eats drivers in New York City has plummeted from $2.17 per delivery to just 76 cents.
The report also found that both companies are using tactics to discourage customers from tipping, such as telling them that prices for orders are "set by an algorithm using your personal data." This can make customers feel like they're being charged extra for services they didn't request, rather than providing a genuine opportunity to show appreciation for the driver's work.
The findings come as Mayor Zohran Mamdani signals a willingness to take on big business and protect the rights of workers. Commissioner Samuel Levine, who worked in the Biden administration for the Federal Trade Commission, is leading the charge against DoorDash and Uber Eats.
"We will no longer allow corporations to rake in record profits on the backs of workers and consumers," Levine said in a statement. "If these companies do not follow new tipping laws going into effect later this month, they will face significant consequences."
However, both DoorDash and Uber Eats have pushed back against the allegations, with DoorDash calling them "false" and claiming that food delivery workers earn nearly $30 an hour. A spokesperson for DoorDash also argued that forcing people to tip may be akin to a tax.
The report's findings are being closely watched by advocacy groups, who see it as a major victory in their efforts to protect the rights of city workers. "This is a new era where we have a mayor that will stand with the deliveristas and use all their power to hold them accountable," said Ligia Guallpa, co-founder and executive director of the Worker's Justice Project.
As the rules on tipping take effect later this month, it remains to be seen how DoorDash and Uber Eats will respond. One thing is certain, however: the city's regulators are not going to let these companies get away with manipulating their app interfaces to cheat workers out of hard-earned tips.
by making it harder for customers to tip them. Like, they're doing some sneaky stuff on the app interface to discourage people from leaving tips. It's not right! 
. It's like they're treating her like an employee instead of a person.
! And now the city regulators are stepping in to try and protect their rights. I'm all for it 
. It's about time someone stood up to those big corporations and said "nope, you can't take advantage of us anymore". 
... think DoorDash & UberEats think they can just rip off their delivery drivers like that? They're literally designin' apps to make it harder for customers to tip, and now we're talkin' $550 MILLION lost tips 
.
... that's just a fancy way of sayin' they're tryin' to sneak in some extra cash without customers noticin'. It's shady, plain and simple 
.
. Bring it on, DoorDash & UberEats 
I'm actually kinda surprised that these big food delivery companies would try to mess with the way tipping works on their apps. Like, isn't it just common sense for customers to want to show appreciation for the drivers who are literally delivering their food? 
It feels like they're trying to cut into more than just profit margins... 
think about it, we're so caught up in the ease of having food delivered that we've lost sight of who's really doing the work – the delivery drivers. And now, these companies are trying to take advantage of us by designing their apps to discourage tipping? That's not just unfair, it's also a reflection of our society's values. We're so focused on getting things done quickly and efficiently that we've forgotten about the importance of fair compensation for those who do the actual work. It's like, what's the point of having a higher minimum wage if we're just going to find ways to circumvent it? And what does this say about our relationship with technology and its impact on our lives? We're so dependent on these apps that we're willing to sacrifice our values for the sake of convenience. It's time to rethink our priorities, I think... 
. it's time for these companies to step up and start treating their workers right 
. Like, come on guys! If you want us to tip your drivers, make it easy for us to do so, not hard. And another thing, why are they trying to make customers feel like we're being charged extra just because of our personal data? That's just creepy 
this is so messed up!!! food delivery giants are literally ripping off their drivers and now the gov is stepping in to stop it?? door dash and uber eats have been finding ways to hide the tip section on their apps and now its costing drivers like $550 million in lost tips!! 76 cents is insane for a delivery! we need more accountability from these companies ASAP!!! 
I mean, come on, it's obvious that DoorDash and Uber Eats are trying to screw their drivers out of money. They can't even be bothered to add a "tip before checkout" option like all other apps do? It's just another example of them trying to save a buck at the expense of their workers 
. The fact that they're trying to spin this as a "false" accusation just shows how desperate they are to avoid taking responsibility for their actions 
just saw that NYC is cracking down on food delivery giants like DoorDash and Uber Eats 
The fact that companies are trying to avoid paying higher wages by messing with tip designs is just shady 
Anyone else think it's time for these apps to start prioritizing workers' rights over profits?