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NYC Reports Delivery Tips Down to 76 Cents as DoorDash, Uber Fight Checkout Tipping Rule

The companies are seeking to block a Jan. 26 city mandate that would restore a tipping prompt during checkout.

Overview

  • New York City’s consumer protection department says average tips on DoorDash and Uber Eats fell to $0.76 per order, down from $3.66 in November 2023.
  • The agency attributes the drop to apps shifting tipping until after checkout and making tip prompts harder to find.
  • City rules set to take effect January 26 require an in-checkout tipping option with a 10% preset or a custom amount.
  • Officials estimate matching tipping options used in other markets could raise courier earnings by roughly $390 million per year.
  • Total courier pay rose by about $1.2 billion after the city began enforcing a minimum pay rate that reached $21.44 an hour last spring, while DoorDash says Dashers average nearly $30 per hour before tips and defends post-checkout tipping as standard.