Particle.news
Download on the App Store

NYC Says Uber Eats, DoorDash Changes Cost Couriers $550 Million in Tips

A federal judge is weighing an injunction against the city's checkout-tipping requirement.

Overview

  • The Department of Consumer and Worker Protection estimates delivery workers lost about $550 million in tips since the apps moved tipping to after checkout in December 2023.
  • Based on company data from July 2023 through June 2025, average tips fell from $3.66 to $0.93 in one week and have stabilized near $0.76 per delivery, while apps with checkout tipping average $2.17.
  • City filings cite reports from Uber and DoorDash showing a combined $948 million more in revenue than wages paid from December 2023 through June 2025.
  • Uber and DoorDash are suing to block a rule set for January 26 that would require tip options at or before checkout, arguing constitutional violations and likening mandated checkout prompts to a tax; a hearing is scheduled before Judge George Daniels.
  • DCWP warns of enforcement if platforms do not comply, notes the delivery minimum pay floor is $21.44 per hour, and estimates the current tip decline equals roughly $5,800 per worker per year.