Uber and DoorDash Challenge NYC Law on Tipping for Food Delivery Apps
Uber and DoorDash have filed a joint federal lawsuit against a forthcoming NYC law that aims to encourage tipping on food-delivery apps, as reported by The New York Times. The law, set to go into effect next month, requires food delivery apps to display a tip suggestion box at checkout, with a recommended tip of 10%. This move comes after many food delivery apps in the city shifted the tip suggestion box to after purchases had been completed, similar to how rideshare apps operate.
The new law is an attempt to improve the livelihoods of food delivery workers, who have experienced a decline in tips since the apps changed their tipping policies. According to Ligia Guallpa, co-founder of Workers Justice Project, “Removing the tipping option is to keep workers in poverty and make them depend on taking more orders.” The law is also seen as a way to promote fairness and transparency in the food delivery industry, where workers often rely on tips to make a living wage.
Background and Context
In 2023, NYC mandated a minimum pay rate for food delivery workers, a first in the country. This move was followed by food delivery apps changing their tipping policies, which led to a decline in tips for workers. The new law aims to reverse this trend by making it easier for customers to tip at checkout. However, Uber and DoorDash argue that the law violates the First Amendment by requiring them to “speak a government-mandated message.” They also claim that the rule would cause customers to use the app less due to “tipping fatigue.”
Despite these claims, many customers may not experience “tipping fatigue” but rather frustration with the numerous fees and charges added to their bills. As the food delivery market in NYC continues to boom, with New Yorkers spending over $265 million on restaurant deliveries in the first half of 2025, the issue of tipping and worker pay remains a pressing concern. Current estimates suggest that there are around 80,000 delivery workers in NYC, highlighting the need for fair and transparent practices in the industry.
Implications and Reactions
The lawsuit filed by Uber and DoorDash has sparked debate about the role of government regulation in the food delivery industry. While some argue that the law is necessary to protect workers’ rights, others see it as an overreach of government authority. The issue has also become a part of the city’s mayoral campaign, with Mayor-elect Zohran Mamdani expressing support for giving customers the option to tip at checkout. Interestingly, DoorDash donated $1 million to his rival, former Gov. Andrew Cuomo, during the campaign.
As the lawsuit unfolds, it remains to be seen how the court will rule on the constitutionality of the NYC law. One thing is clear, however: the issue of tipping and worker pay in the food delivery industry is complex and multifaceted, requiring a nuanced approach that balances the needs of workers, customers, and businesses. By promoting fairness, transparency, and accountability, the industry can work towards creating a more equitable and sustainable model for all stakeholders involved.
