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NYC Report Says App Tips Fell to 76 Cents as City Sets Checkout Tipping Rule

The city will require checkout tip prompts starting January 26.

Overview

  • A Department of Consumer and Worker Protection report finds average tips for New York City food delivery orders have dropped to $0.76, down from $3.66 in late 2023 after apps moved tipping to post‑checkout.
  • The agency estimates couriers lost more than $550 million in tips following those platform changes.
  • Since the city began enforcing a minimum pay rule in December 2023, total courier earnings increased by about $1.2 billion, with the effective floor rising to roughly $21.44 per hour.
  • New amendments require delivery apps to show a tipping option during checkout with a 10 percent preset or a custom amount, which the city projects could add about $390 million annually to workers’ earnings.
  • DoorDash and Uber have sued to block the new requirement, and DoorDash says couriers average almost $30 per hour while on delivery before tips and argues post‑checkout tipping is a standard practice.