(NewsNation) — Regulators in New York City have accused delivery app giants DoorDash and Uber Eats of altering their apps to make it harder for customers to tip drivers.
In a news release issued Tuesday, the New York City Department of Consumer and Worker Protection said the move has cost delivery drivers more than $550 million in tips over the last two years. DCWP also argued that the apps retaliated against minimum wage rules for delivery drivers that took effect in December 2023 by implementing the “design tricks” in its tipping features.
“Under Mayor Mamdani, the biggest corporations in the world will no longer be able to rake in record profits on the backs of workers and consumers,” DCWP wrote in its report. “If these companies do not follow new tipping laws going into effect later this month, they will face significant consequences.”
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According to Gothamist, DoorDash and Uber sued the city in December over an incoming law that is set to require the apps to change their interfaces in order to allow customers the chance to set tips for delivery drivers before checkout. They’ve asked the courts to block it, saying it’s a violation of their property rights “without just compensation.”
That law goes into effect Jan. 26.
In a statement to NewsNation, DoorDash maintained that it has not stolen tips from Dashers, customers were not misled when tipping and that Dashers keep all of their tips.
“Moving tipping to after checkout isn’t novel or nefarious — it’s how tipping works in many areas of life, a spokesperson wrote. “In fact, the DCWP suggested this exact approach in their 2022 study. We followed that suggestion and now they are attacking us for it.”
NewsNation has reached out to Uber for comment.