Delivery workers have been hit hard by changes in tipping policies implemented by Uber and DoorDash, resulting in a staggering $550 million loss in tips since the apps altered their checkout processes. According to a recent report from New York City's Department of Consumer and Worker Protection (DCWP), this significant pay cut is a direct result of the companies' decision to move the tip option after customers place their orders.
The new report highlights the stark contrast between Uber and DoorDash's tipping practices, which have seen average tips plummet from $3.66 per delivery to just 93 cents in a single week. This drastic drop has had a devastating impact on workers, who are now earning an average of only 76 cents per delivery. In stark contrast, Grubhub workers continue to earn an average tip of $2.17 per order.
The DCWP report reveals that Uber and DoorDash's after-checkout tipping policies have been designed to minimize the financial burden imposed by New York City's landmark minimum pay law, which guarantees delivery workers a minimum hourly wage of $21.44. Introduced in December 2023, this law has led to increased costs for the companies, prompting them to implement changes aimed at reducing their expenses.
Despite these efforts, Uber and DoorDash have continued to rake in significant profits from food delivery since the minimum pay law took effect, with combined revenue exceeding wages paid to workers by $948 million between December 2023 and June 2026. This stark disparity has sparked outrage among advocates for delivery workers, who argue that the companies' claims of financial struggles are unfounded.
In response to these concerns, DCWP Commissioner Sam Levine has vowed to take action against Uber and DoorDash if they fail to comply with new tipping laws set to go into effect on January 26. These regulations require the companies to offer tipping options at or before checkout, effectively putting an end to their post-checkout practices.
As the lawsuit filed by Uber and DoorDash makes its way through the courts, advocates for delivery workers remain resolute in their commitment to protecting the rights of these essential workers. As Council Member Shaun Abreu (D-Manhattan) so aptly put it: "When corporations claim that delivery workers are overpaid and app profits are too low, we know they are lying. True affordability comes from treating consumers and workers fairly, not manipulating how people tip."