Today, DoorDash and Uber filed a lawsuit seeking to overturn a New York City law that requires delivery platforms to pressure consumers to tip at checkout, instead of after the delivery.
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. While tipping remains voluntary, the fact is City law requires DoorDash to ask consumers to tip prior to completing checkout and dictates the amounts of suggested tip displayed. A reminder to tip is a courtesy, a forced solicitation of a tip may as well be a tax. Not only does this make life more expensive for New Yorkers, it undercuts the City’s existing policies on pay for delivery workers.
Dashers in New York are guaranteed to earn $21.44 per hour while on delivery, more than many first responders in the city. In fact, they earn much more than that — almost $30 per hour while on delivery, before tips. New Yorkers shouldn’t be pressed by their City Council to add a tip on top of some of the most expensive delivery costs in the country.
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. 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 ordering experience. It should be up to consumers, not the City Council, whether they want to leave a tip in New York.
From groceries to rent, we know New York City is one of the most expensive places to live anywhere in the world. The costs of facilitating delivery in New York City are 95% more expensive than the national average. Despite this, the City Council has dedicated countless hours and seemingly endless resources to passing bills that drive up delivery costs. It’s time to say enough is enough.
This lawsuit is about restoring fairness and affordability to New York City’s delivery market.
