Uber and DoorDash challenge NYC law that encourages tipping
Uber and DoorDash are challenging a forthcoming NYC law that encourages tipping on food-delivery apps, as reported by The New York Times. The two entities have filed a joint federal lawsuit just ahead of the ruling going into effect next month.
Back in 2023, many food delivery apps in the city moved the tip suggestion box to after purchases had been completed. This is sort of how rideshare apps work. It followed NYC mandating a minimum pay rate for food delivery workers, the first in the country. The new law simply switches the tip suggestion box back to checkout, with a suggestion of ten percent. Customers are still free to set it to zero, if that's their thing.
The two companies say this law violates the First Amendment by requiring them to "speak a government-mandated message." They also say the rule would cause customers to use the app less because they were suffering from "tipping fatigue." As a customer of food delivery apps, I am not stricken with tipping fatigue. I have, however, come down with a serious case of "what are all of these mysterious fees on my bill and why is my burrito $45?" fatigue.
NYC food delivery workers have experienced a sharp decline in tips since the apps switched the suggestion field to after a purchase has been completed. It's extremely easy to ignore an app notification while in a food coma on the couch.
"Removing the tipping option is to keep workers in poverty and make them depend on taking more orders," said Ligia Guallpa, co-founder of Workers Justice Project.
Food delivery in the city is still booming. New Yorkers spent more than $265 million on restaurant deliveries in the first half of 2025, which is up from $183 million during the same period in 2022. Current estimates suggest that there are around 80,000 delivery workers in NYC.
This particular law became a small part of the city's recent mayoral campaign. Mayor-elect Zohran Mamdani said during the campaign that he supported giving customers the option to tip at checkout. DoorDash donated $1 million to his rival, former Gov. Andrew Cuomo.This article originally appeared on Engadget at https://www.engadget.com/big-tech/uber-and-doordash-challenge-nyc-law-that-encourages-tipping-163315375.html?src=rss
