Things could get confusing here, for why would DoorDash and Uber sue authorities over a law that is “in their favor”? Well, here’s the context.
DoorDash files case vs. NYC
In a previous report from the Ridesharing Forum team, netizens are criticizing DoorDash for forcing customers to tip upfront, or they wouldn’t receive their orders. Was there a new law enacted against the app?
This is since DoorDash, alongside Uber, are suing New York City over a new rule in town that will mandate for these delivery apps to ask customers to tip the delivery staff upfront, instead of after the delivery has been completed, if they prefer to tip. The apps could only be cleaning their image.
About the law
The law goes into effect starting January 26th, requiring restaurants and grocery delivery apps in the Big Apple to add a tip prompt upon checkout, with the minimum amount set at 10 percent.
So, what netizens are saying could be real.
Violating rights
According to the lawsuit filed last Thursday, DoorDash and Uber are stating that the new rule violates their constitutional rights, since asking customers to tip earlier will prompt them to choose other delivery apps, making deliveries less affordable, as a result.
This is also in lieu of New York requiring an hourly minimum wage for delivery workers. There was a previous lawsuit filed asking the law to be halted, but the apps lost and the law took effect in December 2023. While it may benefit some others, for several other riders, they are earning less today due to the law. Oops. For instance, if they were making almost $30 before the law took effect, they are now making just around $21.
However, a report in July 2024 found that this minimum wage law actually resulted in significantly higher earnings for couriers and had just a minimal impact on delivery demand. It also discovered that delivery fees rose 46 percent, while tip amounts declined by 68 percent.
This is where the confusion starts
To address the lower earnings that riders get, the apps implemented the tipping process, notifying customers after an order is completed.
For New York’s authorities, notifying customers after the order has been completed isn’t enough, so they’d want to “ease things up.”
DoorDash and Uber are not in favor of this rule.
“To be clear, consumers are still welcome to tip their Dashers in New York City, and are prompted to do so once their order is delivered,” DoorDash told Ridesharing Forum. “We do not disagree with policies that ensure Dashers are paid fairly. We disagree with policies that unfairly pressure consumers and remove our options to bring balance to the ordering experience.”
New York City has refused to comment on that statement from DoorDash. For more food delivery news, sign up for your account on Ridesharing Forum.