DoorDash and Uber have filed a lawsuit against New York City over a new rule requiring delivery apps to ask customers for tips up-front rather than after their order is completed.
Under the new law, restaurant and grocery delivery platforms operating in the city must display a tip prompt during checkout, with a minimum tip set at 10%.
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The companies argue that requiring upfront tipping will reduce affordability for consumers, particularly amid cost-of-living pressures.
DoorDash stated: “From groceries to rent, we know New York City is one of the most expensive places to live anywhere in the world.
“The costs of facilitating delivery in New York City are 95% more expensive than the national average. Despite this, the City Council has dedicated countless hours and seemingly endless resources to passing bills that drive up delivery costs. It’s time to say enough is enough.”
DoorDash states that delivery workers currently receive a guaranteed $21.44 per hour for active delivery time in New York City, and claims that average earnings are closer to $30 per hour before tips.
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By GlobalDataThe company continued: “To be clear, consumers are still welcome to tip their Dashers in New York City, and are prompted to do so once their order is delivered. We do not disagree with policies that ensure Dashers are paid fairly.
“We disagree with policies that unfairly pressure consumers and remove our options to bring balance to the ordering experience. It should be up to consumers, not the City Council, whether they want to leave a tip in New York.”
