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NYC Says Post‑Checkout Tipping on Uber Eats and DoorDash Cost Workers $550 Million

A new city analysis links the apps' design changes to a sharp fall in tips ahead of a court decision on a pre‑checkout tipping mandate.

Overview

  • DCWP reports average tips on Uber Eats and DoorDash fell about 75% in a week, from $3.66 to $0.93 per delivery after the December 2023 change, and have since slid to $0.76.
  • Platforms that kept tipping before checkout, such as Grubhub, show higher averages of about $2.17 per order in the city’s analysis of July 2023 through June 2025 data.
  • Uber and DoorDash are seeking a federal injunction against the rule requiring tip options before or at checkout, citing First Amendment concerns, with a hearing set for Jan. 14 and the rule scheduled to take effect Jan. 26.
  • The city says the apps moved tipping to after checkout the day NYC’s $21.44-per-hour minimum pay for delivery workers began, calling it a change that made tipping easy to miss.
  • Court filings referenced by DCWP state the two companies took in a combined $948 million more in revenue than they paid in wages during the post‑law period, while DoorDash disputes the report and labels the checkout tip prompt requirement an added tax.