DoorDash and Uber Eats Face Allegations of Reducing Delivery Worker Tips in New York City

DoorDash and Uber Eats redesigned their app interfaces in December 2023, making the tipping option less visible to users, resulting in a sharp decline in average tips.

The average tip per delivery for DoorDash and Uber Eats drivers dropped from $3.66 to 76 cents, according to the New York City Department of Consumer and Worker Protection.

The change is estimated to have cost delivery workers in New York City over $550 million in tips since December 2023.

The redesign of the tipping interface coincided with the implementation of new minimum wage rules for delivery workers in New York City, which required platforms to raise driver pay.

DoorDash and Uber Eats argue that the changes were necessary to accommodate consumer affordability and were not intended to reduce worker earnings.

The DCWP has accused DoorDash and Uber Eats of implementing a "massive scheme" to reduce worker pay by moving tipping to after checkout. The agency is pushing for a new law, set to take effect on January 26, 2026, which would require the option to tip at checkout with a default of at least 10%.

DoorDash has disputed the claims, stating that workers have earned nearly $30 an hour on average since the minimum wage rules were introduced, and that the report misrepresents the impact of the changes.

The company also emphasized that consumers can still tip after delivery, and that the changes were publicly announced.

Uber Eats and DoorDash have launched a legal challenge against the new tipping law, arguing that it violates free speech rights by mandating how tips are solicited.

The companies maintain that the law imposes an "added tax" on consumers and undermines the ability to tip based on service quality.

Despite the controversy, DoorDash has been expanding its services and investing in technology to improve efficiency and competitive advantage.

It also recently partnered with Family Dollar to deliver affordable essentials, a move aimed at addressing affordability concerns.

What Is the Impact on Delivery Workers?

The reduction in tip amounts has led to an estimated $5,800 annual loss in tips per worker, with total losses reaching over $550 million.

This has sparked concerns among regulators and advocacy groups about the impact on gig worker earnings. DoorDash, however, argues that total worker earnings have increased due to the city's minimum wage rules.

How Are DoorDash and Uber Eats Responding to the Allegations?

Both companies are challenging the new tipping laws in court, arguing that they violate constitutional rights and impose unnecessary restrictions on consumer behavior.

DoorDash has also pointed to data showing that total delivery worker earnings nearly doubled between Q4 2023 and Q2 2025.

What Are the Potential Implications for the Companies and the Market?

The legal battle could have broader implications for the gig economy and how platforms balance consumer experience with worker compensation. DoorDash is also navigating valuation expectations, with some analysts suggesting it is undervalued due to future growth potential in advertising and SaaS offerings.

The situation highlights the ongoing tension between app-based platforms, workers, and regulators, particularly in cities like New York with strong labor protections. The outcome of the legal case could set a precedent for similar disputes elsewhere.

DoorDash and Uber Eats remain focused on their business strategies, including international expansion and the use of AI and autonomous delivery technologies. The company's Q4 2025 financial results will be released in February, providing further insight into its performance and strategy.