"The day the law went into effect, Uber and DoorDash introduced new after-checkout tipping policies in order to hide the higher costs wrought by the new minimum pay standards. The average tip for a worker making deliveries for UberEats and DoorDash decreased from $3.66 per delivery to 93 cents per delivery in just one week after the companies moved the tipping option, DCWP found."
"But for the apps that kept the tipping option before checkout, like Grubhub, workers earn an average tip of $2.17 per order, according to DCWP's analysis. " Our report blows the whistle on a massive scheme by Uber and DoorDash to drive down worker pay by more than $550 million. That era has come to an end," DCWP Commissioner Sam Levine said in a statement. "If these companies do not follow new tipping laws going into effect later this month, they will face significant consequences.""
Delivery workers have lost as much as $550 million in tips after Uber and DoorDash changed their apps so the tip option appears only after customers place orders, according to the city's Department of Consumer and Worker Protection. New York City's minimum pay law guaranteeing $21.44 per hour took effect in December 2023; Uber and DoorDash introduced after-checkout tipping the same day to obscure higher costs from the new standard. Average tips for UberEats and DoorDash fell from $3.66 to $0.93 in one week and have since dropped to $0.76 per delivery. Apps keeping pre-checkout tipping, like Grubhub, average $2.17 per order. Uber and DoorDash sued, claiming the law violates free speech and citing "tipping fatigue" and an affordability crisis.
Read at Streetsblog
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