New York City regulators have filed a scathing report accusing Uber and DoorDash of deliberately manipulating their app interfaces to discourage customers from tipping food delivery workers. The companies' actions, which took effect in December 2023, have cost employees over $550 million in tips since then.
The Department of Consumer and Worker Protection (DCWP) found that the apps' design changes were made in response to new minimum wage rules for delivery drivers in New York City. These rules took effect on January 1, 2024, requiring companies to pay drivers a set wage per hour. DoorDash explicitly stated that these regulations led to the removal of the simple tipping option.
However, the DCWP report reveals that this move has resulted in a significant decrease in tips for delivery workers. The average tip on DoorDash and Uber Eats fell from $2.17 to 76 cents per delivery after the changes were made. Additionally, both companies issue messages to customers telling them that prices are determined by algorithms using personal data.
Critics argue that these actions are not only unfair but also deceptive. "The biggest corporations in the world will no longer be able to rake in record profits on the backs of workers and consumers," said DCWP Commissioner Samuel Levine.
Food delivery app giants like DoorDash have responded, claiming that their reports are false. Samantha Ramirez, a spokesperson for DoorDash, argued that forcing people to tip is "may as well be a tax" and accused the DCWP of trying to pressure consumers to tip even more.
However, Ligia Guallpa, co-founder and executive director of the Worker's Justice Project and Los Deliveristas Unidos, sees this report as a victory for consumer rights. She stated that New York City regulators are taking a harder stance against delivery apps, saying "This is a new era where we have a mayor who will stand with the deliveristas and use all their power to hold them accountable."
The issue comes as Mayor Zohran Mamdani has signaled an expansive appetite for taking on big business. With this report, it seems that he's making good on his promise to protect workers' rights.
As the apps prepare for new regulations requiring customers to be able to set tips before checkout, DoorDash and Uber Eats are at risk of facing significant consequences if they don't comply. The future of tipping in New York City remains uncertain, but one thing is clear: workers will not go unvalued anymore.
The Department of Consumer and Worker Protection (DCWP) found that the apps' design changes were made in response to new minimum wage rules for delivery drivers in New York City. These rules took effect on January 1, 2024, requiring companies to pay drivers a set wage per hour. DoorDash explicitly stated that these regulations led to the removal of the simple tipping option.
However, the DCWP report reveals that this move has resulted in a significant decrease in tips for delivery workers. The average tip on DoorDash and Uber Eats fell from $2.17 to 76 cents per delivery after the changes were made. Additionally, both companies issue messages to customers telling them that prices are determined by algorithms using personal data.
Critics argue that these actions are not only unfair but also deceptive. "The biggest corporations in the world will no longer be able to rake in record profits on the backs of workers and consumers," said DCWP Commissioner Samuel Levine.
Food delivery app giants like DoorDash have responded, claiming that their reports are false. Samantha Ramirez, a spokesperson for DoorDash, argued that forcing people to tip is "may as well be a tax" and accused the DCWP of trying to pressure consumers to tip even more.
However, Ligia Guallpa, co-founder and executive director of the Worker's Justice Project and Los Deliveristas Unidos, sees this report as a victory for consumer rights. She stated that New York City regulators are taking a harder stance against delivery apps, saying "This is a new era where we have a mayor who will stand with the deliveristas and use all their power to hold them accountable."
The issue comes as Mayor Zohran Mamdani has signaled an expansive appetite for taking on big business. With this report, it seems that he's making good on his promise to protect workers' rights.
As the apps prepare for new regulations requiring customers to be able to set tips before checkout, DoorDash and Uber Eats are at risk of facing significant consequences if they don't comply. The future of tipping in New York City remains uncertain, but one thing is clear: workers will not go unvalued anymore.
Big corps exploiting delivery workers! 
They make money off tips, now they wanna control how much people give? 
Not cool, NYC regulators are on the case and I'm loving it 
Those $550 million lost in tips is a small price to pay for fairness 
and I'm getting so hungry just reading about this... anyway, the whole tipping thing is wild to me. Like, I get it, big companies don't want to lose money, but $550 million? That's a lot of tips. Did you know that my friend's cousin works at one of these places and they're always stressing about making ends meet? It's crazy how much of an impact this can have on people's lives. And what's with the algorithm thing? Like, is it even fair to use personal data to determine prices? 
I was on a train heading to visit my aunt who lives in Portland 
. I always wanted to try their famous food cart scene, and I'm so down for some Vietnamese sandwiches or something 
. Anyway, back to this whole tipping thing... it's wild that these companies are trying to control the narrative around it. Like, can't we just let people decide how much they want to tip? It feels like corporations are always trying to squeeze every last penny out of us 
. Did you know that there's a new video game coming out that's all about time travel and exploration? I'm super hyped for it!
. It's about time someone took those food delivery giants to task for their sneaky tactics 
. The fact that they're making millions while delivery workers struggle to make ends meet is just not right 
. I mean, who doesn't love a good tip? 
No thanks! Transparency is key, folks. And kudos to Mayor Mamdani for standing up for workers' rights 
. This could be a game-changer for the entire gig economy 
.
. It seems like companies like DoorDash and Uber Eats are just trying to squeeze more profits out of us. I mean, who needs algorithms using personal data to determine prices? It's already hard enough navigating these apps without them trying to control every aspect of our lives. And now they're trying to take away our right to tip because it's "unfair"? Give me a break 
. It's all about the benjamins, baby 
. It's about time someone held these big corporations accountable for their actions. And I love how Ligia Guallpa is calling out DoorDash and Uber Eats for being deceptive 
. This is all about consumers standing up for themselves and demanding better treatment.
. It'll be interesting to see how these companies respond to new regulations requiring customers to set tips before checkout. Will they comply or try to find ways to skirt around it? Only time will tell 
.
they're basically exploiting people's kindness and willingness to show appreciation for good food. DoorDash and Uber Eats need to be held accountable for this 
it's about time someone stood up for those delivery workers and their hard-earned tips 
. and yea let's not forget, these companies r makin a ton of cash off their users' orders. so when do u get paid back? not by tipping, that's just a way to keep them in the dark 
this is wild! I mean, think about it, the big companies just found a way to cut corners and make bank off those delivery workers 
! It's all about keeping those profits rolling in while screwing over the workers 
. Fingers crossed they stick to it and make those apps comply 
. The fact that DoorDash is denying any wrongdoing but still got caught with their pants down speaks volumes. And now, with the new regulations coming in, I'm rooting for the delivery workers to get the respect they deserve. Maybe we'll see some real change here 
but come on, it's a basic human right to be fairly compensated for your work. And let's not forget that these companies are making billions of dollars off customers' backs 
.
like, what's the deal?! its all cuz of new min wage rules or whatever... but it's still so unfair! 