DoorDash and Uber try to nix NYC law encouraging tipping
DoorDash and Uber are challenging a new New York City law that requires delivery apps to suggest a minimum 10% tip before customers place their orders. The companies argue that this mandate, set to take effect in January 2026, violates their First Amendment rights by forcing them to display a government-mandated message and claim it will cause “tipping fatigue,” discouraging users and reducing orders. The law, sponsored by Democratic Councilman Shaun abreu, also mandates prompt payment to delivery workers and ensures tipping options are presented before or during checkout, aiming to boost fair compensation for workers. Incoming Mayor Zohran Mamdani supports the legislation, viewing it as a measure to protect delivery workers from exploitation. DoorDash and Uber’s lawsuit has drawn criticism from city officials who affirm the law does not force anyone to tip but protects workers’ right to receive fair tips. The dispute highlights tensions between gig economy companies and city efforts to increase worker compensation amid declining tip income due to changes in app tipping structures.
DoorDash and Uber try to nix NYC law encouraging tipping before Mamdani takes office
DoorDash and Uber are scrambling to stop a New York City law that will mandate pre-delivery tipping suggestions that they say will discourage orders.
The companies filed suit in the Southern District of New York late last week in hopes of stopping the law from taking effect before Mayor-elect Zohran Mamdani’s term begins on Jan. 1. They argue that the new rules violate the First Amendment by requiring them to “speak a government-mandated message.”
The legislation mandates a 10% minimum tip suggestion for orders placed through third-party food and grocery delivery services. DoorDash and Uber, widely described as the two top food delivery companies, say the legislation will impose “tipping fatigue” and cause consumers to drop off the app.
“Lessened engagement would result in fewer orders,” the lawsuit says.
The New York City Council passed local laws 107, 108, and 113 in July. Democratic Councilman Shaun Abreu sponsored the laws, which go into effect in their newest iteration on Jan. 27, 2026, his office confirmed to the Washington Examiner.
The laws govern the tip suggestion, a mandate to provide the option to tip before or at the same time an order is placed, and a requirement for delivery services to pay their workers not more than seven days after the end of a pay period.
DoorDash compared the tip suggestion to an “added tax.”
“In the midst of an affordability crisis, the New York City Council has turned tipping into essentially an added tax by forcing platforms like DoorDash to pressure consumers to tip at checkout,” DoorDash said in a statement.
“We disagree with policies that unfairly pressure consumers and remove our options to bring balance to ordering experience,” the statement continued. “It should be up to consumers, not the City Council, whether they want to leave a tip in New York.”
Abreu countered that the legislation does not force anyone to tip. “At the end of the day, there is nothing forced on anyone,” Abreu said. “There’s no additional costs to the apps.”
The legislation aligns with the priorities of the incoming Mamdani administration. The mayor-elect has been supportive of delivery workers, a group he claims has been “exploited.”
The socialist was not DoorDash’s preferred candidate in New York City’s 2025 mayoral race, which took place in one of the largest food delivery markets in the country. DoorDash donated $1 million to former New York Gov. Andrew Cuomo’s campaign. Business leaders mostly favored Cuomo over Mamdani.
The legislation comes as tips have fallen for delivery workers after the apps placed their tip options after orders had been completed. Thirty-nine-year-old Jose Lino told the New York Times that his tip income fell once the companies enacted the change.
“We have seen how the apps have been discouraging consumers from even tipping,” Lino said. “It will help us bring more income that we need.”
Outgoing Mayor Eric Adams’s administration has also shown opposition to the companies’ lawsuits. A spokeswoman in New York City’s Department of Consumer and Worker Protection, the city’s workplace laws enforcer, said it was “disappointed” in the companies’ lawsuit.
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“Once again, Uber and DoorDash are attempting to limit app-based delivery workers’ right to fair and dignified compensation — now, by seeking to restrict consumers’ ability and choice to decide how and when to tip,” the spokeswoman, Stephany Vasquez Sanchez, told the New York Times.
The Washington Examiner reached out to the Mamdani transition team for comment, but did not receive a response.
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