At a Glance
- DoorDash and Uber Eats redesign cut average tip from $3.66 to $0.76 per delivery
- New York City delivery workers lost an estimated $554 million in tips
- City agency says change coincided with December 2023 minimum-pay enforcement
- Why it matters: Workers face $5,800 annual income drop as platforms sue to block new tipping rules
App redesigns by DoorDash and Uber Eats have slashed customer tips for New York City food-delivery workers by nearly 80 percent, costing the workforce more than half a billion dollars in less than two years, according to a city investigation released by the Department of Consumer and Worker Protection (DCWP).
The agency claims both companies moved tipping prompts to a separate, post-checkout screen once the city began enforcing a minimum-pay rate in December 2023. Within a week of the switch, average tips plunged from $3.66 to $0.93 per delivery and have since fallen further to $0.76-a drop that translates to roughly $5,800 in lost yearly income for each courier.
How the Tip Collapse Happened
DCWP investigators say the platforms shifted tipping from an obvious checkout step to an “easy-to-miss” flow that customers must hunt down after the order is complete. The timing aligned with New York’s new wage floor that took effect late 2023.
Key findings from the report:
- Average tip on DoorDash and Uber Eats: $0.76
- Average tip on competing apps: $2.17
- Estimated city-wide tip loss: $554 million
- Per-worker annual loss: about $5,800
Companies Fight Back
DoorDash rejects the agency’s conclusions. “No money has been stolen from Dashers. Consumers have not been misled. Dashers always receive 100 percent of tips placed on DoorDash,” said John Horton, head of North America public policy for the company. Horton noted the after-checkout model was recommended in a 2022 DCWP study under former Mayor Eric Adams.
Uber Eats did not immediately respond to questions from News Of Fort Worth.
New Rules, New Lawsuit
The report arrives days before DCWP begins enforcing amended city laws that will require food-delivery apps to present “clear, user-friendly” tipping options. DoorDash and Uber Eats sued last month to block the amendments, but no court ruling has halted the January 26 enforcement date.
“If these companies do not follow new tipping laws going into effect later this month, they will face significant consequences,” warned DCWP Commissioner Samuel A.A. Levine.
Past Trouble
This is not DoorDash’s first wage-related clash in New York. In early 2024 the state Attorney General announced a $16.75 million settlement after finding the company allegedly misled customers and workers about tips between May 2017 and September 2019. Under the old “guaranteed pay” model, tips were used to satisfy base wages rather than added on top.
Key Takeaways
- City data shows app redesigns cut tips by roughly 80%, costing workers $554 million
- DoorDash claims it followed a city suggestion and calls the report “flat out wrong”
- Both platforms are suing to stop stricter tipping rules set to take effect January 26
