New York City’s Tipping Crisis: The Impact of Delivery App Changes on Couriers

In New York City, food delivery workers for DoorDash and Uber Eats have experienced a significant decline in tips, averaging just 76 cents per order, down from $3.66 two years ago. This dramatic drop has resulted in an estimated loss of over $554 million in tips for couriers, according to a report from the New York City Department of Consumer and Worker Protection (DCWP). The decline in tipping coincided with changes made by the delivery apps that shifted the tipping process to after checkout, making it more difficult for customers to tip.

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In December 2023, New York City enforced a minimum pay rate for delivery workers, increasing their hourly wage to $21.44, nearly double the previous average. This policy change led to a $1.2 billion increase in total pay for couriers. However, the apps responded by altering their tipping mechanisms, prompting customers to tip only after delivery, which the DCWP claims has contributed to the substantial decrease in tips.

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In response to the tipping crisis, New York City is set to implement new amendments to its delivery worker laws on January 26, 2026. These amendments will require delivery apps to provide clear options for tipping during the checkout process, including a selectable 10% tip option. The DCWP estimates that if these changes are effectively implemented, they could increase delivery worker earnings by approximately $390 million annually.

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Both DoorDash and Uber Eats have filed lawsuits against the city, seeking to block the new tipping requirements. They argue that the city’s claims regarding their tipping practices are inaccurate and assert that customers are not misled about tipping. John Horton, DoorDash's head of North America public policy, stated, “To be clear: no money has been stolen from Dashers. Consumers have not been misled.” The companies maintain that moving tipping to after checkout is a standard practice in many service industries.

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Critics, including DCWP Commissioner Samuel A.A. Levine, have condemned the delivery apps for their design changes, labeling them as “dark patterns” that intentionally complicate the tipping process. Levine emphasized that the era of corporations profiting at the expense of workers is coming to an end under the new administration of Mayor Zohran Mamdani, who has prioritized improving working conditions for delivery workers.

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While the DCWP reports a significant loss in tips, DoorDash contends that their couriers earn an average of nearly $30 per hour before tips, which they argue is competitive with many first responders. The discrepancy in reported earnings and the impact of the new regulations continues to be a point of contention between the city and the delivery companies.

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As the enforcement date for the new tipping regulations approaches, the outcome of the legal challenges posed by DoorDash and Uber Eats remains uncertain. The city plans to move forward with the new laws, which are expected to reshape the tipping landscape for delivery workers in New York City. The implications of these changes could extend beyond New York, potentially influencing similar regulations in other cities.

Uber stock dips after NYC says Uber Eats and DoorDash cut tips by $550 million — what to watch next