New York City regulators have accused food delivery giants DoorDash and Uber Eats of deliberately altering their app interfaces to discourage customers from tipping workers, resulting in the loss of over half a billion dollars in tips for delivery drivers. According to a report by the Department of Consumer and Worker Protection, the companies implemented "design tricks" that obscure opportunities to offer tips, in response to new wage rules that took effect in December 2023.
The regulations required food delivery apps to allow customers to add tips before checkout, but DoorDash has removed this option, stating that it is due to the new wage rules. However, the report found that DoorDash drivers' average tip per delivery fell from $2.17 to just 76 cents after the changes were made.
In addition to altering their app interfaces, both companies are also issuing messages to customers in the city that imply prices for orders are set by an algorithm using personal data, rather than human labor. The report argues that this is a deliberate attempt to discourage tipping and maintain profit margins.
The findings have been welcomed by Mayor Zohran Mamdani, who has signaled his willingness to take on big business. Commissioner Samuel Levine of the Department of Consumer and Worker Protection stated that if companies do not follow new tipping laws set to go into effect later this month, they will face significant consequences.
DoorDash has denied the allegations, stating that food delivery workers earn nearly $30 an hour and that the report's claims are false. However, a spokesperson for the company also suggested that forcing people to tip more is equivalent to imposing a tax.
The Worker's Justice Project and Los Deliveristas Unidos have welcomed the report as evidence of New York City regulators taking a harder stance against delivery apps. "This is a new era where we have a mayor who will stand with the deliveristas and use all their power to hold them accountable," said Ligia Guallpa, co-founder and executive director of the organizations.
The outcome of this dispute remains to be seen, but one thing is clear: food delivery workers in New York City are fighting back against companies that profit from their labor.
The regulations required food delivery apps to allow customers to add tips before checkout, but DoorDash has removed this option, stating that it is due to the new wage rules. However, the report found that DoorDash drivers' average tip per delivery fell from $2.17 to just 76 cents after the changes were made.
In addition to altering their app interfaces, both companies are also issuing messages to customers in the city that imply prices for orders are set by an algorithm using personal data, rather than human labor. The report argues that this is a deliberate attempt to discourage tipping and maintain profit margins.
The findings have been welcomed by Mayor Zohran Mamdani, who has signaled his willingness to take on big business. Commissioner Samuel Levine of the Department of Consumer and Worker Protection stated that if companies do not follow new tipping laws set to go into effect later this month, they will face significant consequences.
DoorDash has denied the allegations, stating that food delivery workers earn nearly $30 an hour and that the report's claims are false. However, a spokesperson for the company also suggested that forcing people to tip more is equivalent to imposing a tax.
The Worker's Justice Project and Los Deliveristas Unidos have welcomed the report as evidence of New York City regulators taking a harder stance against delivery apps. "This is a new era where we have a mayor who will stand with the deliveristas and use all their power to hold them accountable," said Ligia Guallpa, co-founder and executive director of the organizations.
The outcome of this dispute remains to be seen, but one thing is clear: food delivery workers in New York City are fighting back against companies that profit from their labor.
theyre basically trying to rip off the workers who are already gettin paid peanuts... 500 million dollars in tips lost is straight up robbery 
and now theyre tryin to justify it by sayin its because of new wage rules lol like no one buys that 
and what really gets me is when they talk about algorithms and personal data like thats legit 
newsflash: human labor is still worth somethin, especially in a city as big and diverse as nyc
I'm all about those tipping rights you know? it's just not right that these big food delivery giants are messing with the system like this. I mean, DoorDash and Uber Eats are basically saying they're doing us a favor by removing the tip option, but really they're just trying to keep more of our cash for themselves 
. And don't even get me started on those "design tricks" that make it hard for customers to leave tips in the first place... it's like they're trying to rob us blind.
It's time for these companies to step up and give workers a fair deal. We need more regulation and better protections for delivery drivers. Anything less is just not cool 
.
. It's about time someone stood up for the little guy and held these companies accountable. The Worker's Justice Project and Los Deliveristas Unidos are doing some awesome work too, and I'm all for their efforts.
door dash and uber eats are literally trying to screw over their drivers by hiding the tip option on their apps i mean who makes these decisions? like they're trying to control how much money workers get paid... the whole algorithm thing is just a excuse, it's not that hard to add a tip button 
? sounds like a bunch of corporate mumbo-jumbo to me 
. time to hold them accountable for their business practices 
I feel for those delivery drivers, man... it's like they're being taken advantage of left and right. Those companies are basically using design tricks to make it hard for customers to show some love to the workers who are out there hustling for them. It's all about the benjamins, you know? 
I hope the Worker's Justice Project and Los Deliveristas Unidos keep fightin' for change, 'cause this is a win-win for workers and consumers alike 
this is wild - can you believe these giants are trying to rip off their own workers? altering the app interface to hide tip options and making it seem like prices are set by algorithms instead of human labor... what's next, denying drivers' hourly wages too? 
? The whole thing feels like they're trying to confuse us into tipping less, not more. And another thing, what's with all this algorithm talk? Sounds like a load of codswallop 
. The fact that drivers' average tips plummeted by over 70% after the changes speaks volumes about their true intentions 
. The Worker's Justice Project and Los Deliveristas Unidos are doing a great job in holding these behemoths accountable, though