City regulators on Tuesday accused Uber and DoorDash of deliberately altering their app interfaces to discourage customers from tipping food delivery workers, a move that has cost the employees more than $550 million over the last two years.
A report published by the Department of Consumer and Worker Protection argues that food delivery app giants retaliated against minimum wage rules for delivery drivers that took effect in December 2023 by implementing “design tricks” that obscure opportunities to offer a tip in their mobile apps.
DoorDash explicitly blames the new wage rules for removing the simpler tipping option. “In response to regulations in New York City, you will now only be able to add a tip for your Dasher after they have been assigned,” a message on the app’s checkout page states. Other food delivery apps like GrubHub allow customers the option to add a tip before checking out.
The average tip for DoorDash and Uber Eats drivers in the city fell from $2.17 to 76 cents per delivery after the companies made the changes to their apps, the report found. Both companies also issue messages to customers in the city telling them the prices for their orders were “set by an algorithm using your personal data.”
The findings from the city agency came as Mayor Zohran Mamdani has signaled an expansive appetite for taking on big business.
The report was published by DCWP Commissioner Samuel Levine, who worked in the Biden administration for the Federal Trade Commission under Lina Khan. Khan served on Mamdani’s transition team and earned a reputation as a trustbuster and hard-charging champion for consumer rights.
DoorDash and Uber Eats last sued the city over a law that is set to require the apps to change their interfaces in order to allow customers the chance to set tips for delivery drivers before checkout. The new rule is set to go into effect later this month.
“Under Mayor Mamdani, the biggest corporations in the world will no longer be able to rake in record profits on the backs of workers and consumers,” 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,” he added.
A spokesperson for DoorDash, which also donated $1 million to a political action committee that supported former Gov. Andrew Cuomo’s mayoral run, called the DCWP’s claims false and argued that food delivery workers earn nearly $30 an hour.
“What’s really happening is the DCWP wants to pressure consumers to tip even more,” DoorDash spokesperson Samantha Ramirez wrote in a statement. “As we’ve said, forcing people to tip may as well be a tax.”
A spokesperson for Uber did not respond to a request for comment.
Ligia Guallpa, the co-founder and executive director of the Worker’s Justice Project and Los Deliveristas Unidos, said the report shows New York City regulators are taking a harder stance against the delivery apps.
“This is a new era where we have a mayor that will stand with the deliveristas and will use all their power to hold them accountable,” Guallpa said.