To comply with the recent minimum wage increase for app-based food delivery workers in New York City, DoorDash and Uber Eats have adjusted their tipping policies
, according to ABC News. This move comes after the New York State Supreme Court mandated an immediate payment of at least $17.96 per hour for delivery workers in September 2023.Vilda Vera Mayuga, Commissioner of the New York City Department of Consumer and Worker Protection, praised the court’s decision, stating, “The minimum pay rate of at least $17.96 per hour will help lift thousands of New Yorkers and their families out of poverty, while still allowing flexibility for both apps and workers.”
Acknowledging the importance of delivery workers in the city’s workforce, Maria Torres-Springer, Deputy Mayor for Housing, Economic Development, and Workforce, expressed gratitude for the court’s decision and emphasized the positive impact on the local economy and workers.
In response to the court ruling, DoorDash and Uber Eats have implemented changes for New York City customers. Both platforms have eliminated the tipping prompt on the checkout page and introduced a new service fee for each transaction. Customers retain the option to add a tip after the delivery, with assurances from both companies that 100% of tips will go to the delivery drivers.
DoorDash clarified its stance, “The ill-conceived, extreme minimum pay rate for food delivery workers in New York City will have significant consequences for everyone who uses our platform.” The company explained that the changes aim to address increased costs associated with the new regulations.
DoorDash
had previously warned of potential consequences when the minimum pay rate was announced in June. The platform stated that to meet the new pay standard, costs on each order might increase, services in New York City could be reduced, and there might be fewer opportunities for Dashers to choose their work hours.The food delivery platforms, including Grubhub, united earlier this year to oppose the City Council measure, but their efforts were unsuccessful. DoorDash emphasized that the changes were a direct result of the earnings standard imposed in New York City and hoped that the modifications would help balance the impact across all platform users.
A DoorDash spokesperson mentioned, “We’re hopeful that these changes will allow us to better balance the impact across everyone who uses our platform and continue providing the best possible experience as we explore further changes to the platform in the months to come.”