When it comes to fitness app development, understanding how different cities' regulations can impact businesses is crucial. A recent example is the removal of tipping prompts on DoorDash and Uber Eats in New York City.
DoorDash recently made changes to its tipping policy in response to a new minimum wage increase for app-based food delivery workers in New York City. The company stated that the change was due to "the impact of bad policies in NYC." DoorDash and Uber Eats issued statements announcing the changes, which include removing the standard tipping prompt on the checkout page and adding a new service fee to each transaction.
Why the Change?
The minimum wage increase for app-based food delivery workers in New York City was announced earlier this fall. The New York State Supreme Court ruled that apps should immediately pay delivery workers at least $17.96 per hour, according to the New York City Department of Consumer Worker Protection. This change aims to help lift thousands of New Yorkers and their families out of poverty.
What Does This Mean for Customers?
In a statement, DoorDash said that its platform would have to increase costs on each order or reduce services in New York City to meet the new minimum pay rate. The company stated that this could lead to fewer opportunities for Dashers to work when they choose, customers potentially being priced out of orders, and possible jobs lost at local restaurants.
What's Next?
DoorDash emphasized that customers can still choose to include a tip once the delivery has been completed, and both companies assured delivery drivers that they will receive 100% of those tips. The company added that it is exploring further changes to its platform in the months to come.
In summary, DoorDash and Uber Eats removed tipping prompts on their checkout pages in New York City due to the city's minimum wage increase for app-based food delivery workers. This change aims to balance the impact of the policy across all users of the platforms.