A federal judge on Friday rejected a request from DoorDash and Uber to block two New York City laws requiring food delivery companies to include certain tipping options and prompt customers to tip delivery workers before or during checkout.<\/p>\n
U.S. District Judge George Daniels ruled that the two companies had failed to show they were likely to succeed on the merits of the case or that they would suffer irreparable harm in the meantime.<\/p>\n
\u201cPlaintiffs raise important constitutional questions,\u201d Daniels wrote. \u201cThose questions warrant careful consideration on a full merits record. But the preliminary injunction standard demands more than the existence of contested issues.\u201d<\/p>\n
The two new tipping laws, which are set to take effect next week, require food delivery companies to offer customers the option to tip before or while they are placing an order, rather than afterward.<\/p>\n
They are also required to include certain tipping options, including one option of at least 10 percent and another where customers can manually input their tip.<\/p>\n
The new measures came after food delivery companies shifted their tipping prompts to after customers placed an order in the wake of new minimum wage laws for delivery workers.<\/p>\n
DoorDash and Uber have challenged the tipping laws, arguing they violate their First Amendment rights. However, Daniels suggested the laws likely implicate \u201ccommercial speech\u201d at most, which typically enjoys more limited protections.<\/p>\n
The judge was also unpersuaded by the food delivery companies\u2019 argument that the laws will \u201cirreparably damage Plaintiffs\u2019 relationship and goodwill with consumers due to tipping fatigue and high costs.\u201d<\/p>\n
Following Friday\u2019s ruling, DoorDash warned that allowing the measures to take effect will result in an \u201cimmediate drop off in orders for New York\u2019s small businesses, a worse experience for customers, and fewer overall deliveries for New York City dashers.\u201d<\/p>\n
\u201cDashers in New York City earn roughly $30 an hour while on delivery before tips,\u201d a company spokesperson said. \u201cForcing platforms to solicit a tip before checkout at a time when New Yorkers are sick of tipping culture and facing a growing affordability crisis is bad policy\u2013plain and simple.\u201d<\/p>\n
\u201cWe\u2019re disappointed in this ruling, but are confident in our position and will continue working to prevent further losses for local businesses and higher costs for consumers,\u201d they added.<\/p>\n
Uber did not immediately respond to a request for comment.<\/p>\n
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