New York City Mayor Zohran Mamdani is celebrating after city officials said a crackdown on what they called “deceptive tipping practices” by food delivery apps has helped workers collect an additional $104 million in tips since January — but critics argue customers are the ones paying the price.
“Uber Eats and DoorDash hid tip buttons and set default tips below 10%. As a result, tips for delivery workers fell 79%,” Mamdani, 34, wrote via X on Wednesday, July 30. “In January, we made these corporations change their apps — and in the past six months, we’ve put $104 million back in delivery workers’ pockets. This is only the beginning.”
Social media users were quick to slam his post.
“Are you really bragging about making ordering from UberEats and DoorDash more expensive for New Yorkers?” one person replied.
Another added, “I’m tired of subsidizing corporate America by being forced to pay wages they should be paying. They should pay a living wage.”
At a press conference later that same day, the progressive politician called the increase a “$104 million victory” and said that it was part of City Hall’s broader effort to “hold delivery apps and mega corporations accountable,” and that he was “confident that more wins are on the way.”
The city’s tipping rules took effect in January and they require delivery apps to display the option to tip before checkout instead of after an order is placed. They also require the apps to include a minimum suggested gratuity of 10 percent.
On Wednesday, Business Insider reported that the city said the changes have doubled tipping rates since January and estimated that the average delivery worker would earn an additional $2,287 in tips per year.
However, not everyone sees that as a win.
DoorDash and Uber sued NYC over the rules before they took effect and argued that they unfairly pressure customers into tipping more.
John Horton, DoorDash’s head of North America public policy, told the outlet that the city’s claims about its tipping practices were “flat out wrong.”
“Moving tipping to after checkout isn’t novel or nefarious,” he continued. “It’s how tipping works in many areas of life.”
This story NYC Mayor Zohran Mamdani Celebrates $104M Surge in Delivery Driver Tips as Critics Slam Higher Costs first appeared on Globe. Follow Globe on Yahoo so you don’t miss what’s coming next.