Full Breakdown
New York City Accuses Uber Eats and DoorDash of Depriving Delivery Workers of $550 Million in Tips
1/14/2026, 2:20:35 AM
Allegations of Tipping Policy Manipulation
The New York City Department of Consumer and Worker Protection (DCWP) has accused Uber Eats and DoorDash of implementing a tipping policy that has resulted in a loss of over $550 million in tips for delivery workers since December 2023. This allegation coincides with the city's new minimum pay law for delivery workers, which mandates an hourly wage of $21.44. The tipping policy, which requires customers to leave gratuities only after checkout, has reportedly led to a dramatic decline in average tips—from $3.66 per delivery to just 76 cents, according to the DCWP's findings.
Background on the Tipping Policy Change
The tipping policy was introduced on the same day that New York City began enforcing annual inflation-adjusted pay hikes for app-based delivery workers. The DCWP's report indicates that the average tip for Uber Eats and DoorDash drivers fell significantly following the policy change, while drivers for competing apps like GrubHub, which allow tips at checkout, earned an average gratuity of $2.17. The DCWP's analysis, based on data from July 2023 to June 2025, suggests that the new tipping process is "easy to miss and difficult to navigate," further exacerbating the decline in tips.
Legal Battle Over New Tipping Laws
Uber Eats and DoorDash are currently engaged in a legal dispute with New York City over new laws set to take effect on January 26, 2026. These laws would require the apps to provide customers with the option to tip before or during checkout and to set a default tipping rate of at least 10% of the order's cost. The companies argue that these requirements violate their First Amendment rights and liken them to an "added tax" on consumers.
DCWP Commissioner Samuel Levine has stated that the agency will enforce the new laws vigorously to ensure that delivery workers receive fair compensation. The next hearing in the case is scheduled for Wednesday, with a federal judge yet to rule on the matter.
Criticism and Opposition
Critics of Uber Eats and DoorDash's practices, including NYC Council Member Shaun Abreu, have expressed strong opposition to the companies' claims. Abreu stated, "If someone wants to tip them, they shouldn’t have a hard time doing it," emphasizing that making tipping more difficult is "plain wrong." Additionally, Ligia Guallpa, co-founder of the Worker's Justice Project, noted that the current administration is taking a firmer stance against delivery apps, indicating a shift in accountability for worker rights.
Official Statements
In response to the DCWP's report, John Horton, DoorDash's head of North America public policy, dismissed the findings as "flat out wrong," asserting that the change in tipping policy is not unusual. He also highlighted that total pay to delivery workers has increased by $1.2 billion since the implementation of the minimum pay law. Meanwhile, DoorDash's spokesperson argued that the new tipping laws effectively pressure consumers to tip more, equating this pressure to a tax.
What's Next
As the legal battle continues, the outcome of the upcoming hearing will be pivotal in determining the future of tipping practices for delivery workers in New York City. The implications of this case may set a precedent for how gig economy companies manage tipping and worker compensation moving forward.
