Overview
- U.S. District Judge George B. Daniels denied DoorDash and Uber Eats’ bid for a preliminary injunction, clearing Local Laws 107 and 108 to take effect on Jan. 26.
- The measures require delivery apps to present a tipping option at or before checkout and to set a default suggested gratuity of at least 10%.
- DoorDash and Uber have appealed and argue the mandate infringes on speech and will lead to fewer orders for small businesses and drivers.
- City officials and worker advocates praised the decision, and the Department of Consumer and Worker Protection plans enforcement after estimating about $550 million in lost tips since late 2023.
- In a separate ruling, U.S. District Judge John Koeltl rejected Instacart’s challenge to related wage and tipping laws, and the company says it will appeal.