New York City's Regulations Under Fire as DoorDash and Uber Sue Over Delivery Tip Laws
Two of the largest food delivery companies, DoorDash and Uber, have filed a lawsuit against New York City over its new laws requiring their apps to offer customers the chance to tip delivery workers at checkout. The companies claim that these regulations infringe on their constitutional rights to free speech and are also arguing for damages, stating that the rules are unfair.
According to the companies' complaint, the law compels them to "speak a government-mandated message in a prescribed manner and at a prescribed time." They believe this limits their ability to communicate with customers about tipping. The current laws require that customers be given the option to tip at checkout and set a default rate of at least 10% of the order's cost.
DoorDash and Uber, citing "tipping fatigue" and rising delivery prices, argue that customers will use their platforms less if prompted to tip more frequently than they would otherwise. This could result in lower revenues for both companies. The firms also claim that the city's regulations are tantamount to an added tax on customers who wish to tip their delivery workers.
The lawsuit comes as part of a larger trend of tech giants pushing back against regulations aimed at improving working conditions and wages for gig economy workers, such as delivery drivers. In this case, DoorDash and Uber may try to block the laws altogether or receive monetary compensation from the city.
DoorDash recently released a statement, suggesting that the city's regulations have turned tipping into an "added tax" amid "an affordability crisis." The company believes that customers should not be forced to tip delivery workers unless they wish to do so.
City Councilmember Shaun Abreu, who authored the new laws, claims that DoorDash and Uber began hiding tipping options on their platforms after the city set a minimum wage for food delivery workers several years ago. He argues that this is not only unfair but also results in millions of dollars in lost gratuities for delivery workers.
Abreu believes that customers should be able to tip their delivery workers without difficulty, stating that "no one is ever forced to tip." However, DoorDash and Uber's stance on the issue suggests a fundamentally different approach.
Two of the largest food delivery companies, DoorDash and Uber, have filed a lawsuit against New York City over its new laws requiring their apps to offer customers the chance to tip delivery workers at checkout. The companies claim that these regulations infringe on their constitutional rights to free speech and are also arguing for damages, stating that the rules are unfair.
According to the companies' complaint, the law compels them to "speak a government-mandated message in a prescribed manner and at a prescribed time." They believe this limits their ability to communicate with customers about tipping. The current laws require that customers be given the option to tip at checkout and set a default rate of at least 10% of the order's cost.
DoorDash and Uber, citing "tipping fatigue" and rising delivery prices, argue that customers will use their platforms less if prompted to tip more frequently than they would otherwise. This could result in lower revenues for both companies. The firms also claim that the city's regulations are tantamount to an added tax on customers who wish to tip their delivery workers.
The lawsuit comes as part of a larger trend of tech giants pushing back against regulations aimed at improving working conditions and wages for gig economy workers, such as delivery drivers. In this case, DoorDash and Uber may try to block the laws altogether or receive monetary compensation from the city.
DoorDash recently released a statement, suggesting that the city's regulations have turned tipping into an "added tax" amid "an affordability crisis." The company believes that customers should not be forced to tip delivery workers unless they wish to do so.
City Councilmember Shaun Abreu, who authored the new laws, claims that DoorDash and Uber began hiding tipping options on their platforms after the city set a minimum wage for food delivery workers several years ago. He argues that this is not only unfair but also results in millions of dollars in lost gratuities for delivery workers.
Abreu believes that customers should be able to tip their delivery workers without difficulty, stating that "no one is ever forced to tip." However, DoorDash and Uber's stance on the issue suggests a fundamentally different approach.
door dash & uber are just trying 2 get outta tipping their workers they're all about dat benjamins 
but whats wrong w/ a lil extra cash for the ppl who deliver ur grub? i think its fair 2 require companies 2 give customers the option 2 tip, esp since delivery prices r gettin crazy 
& now ur stuck w/ these apps makin u feel like u gotta pay more just bcos they said so lol & city councilmember abreu is all about it 
he's tryna protect those workers from getting taken advantage of. lets see how dis plays out 
The price of freedom isn't something you pay once in your life, it costs every day for each new decision or failure to act with courage or integrity. 
The city's just trying to level the playing field and ensure that delivery workers get a fair share of the tips.
meanwhile, those workers are still gettin' low pay & no benefits 
would rather see companies invest in fair wages & better work conditions instead of fighting regulations 
so like i was ordering food last night and the guy just dropped it at my door and ran lol i didn't even get to thank him because there was that screen asking if i wanted to tip or not ugh why do they have to make us choose?! 
Can't they just see it from our perspective for once?