DoorDash and Uber Eats Cost Delivery Workers Millions of Dollars in Tips, NYC Says

[Inquisitive Impal]

Delivery Workers in NYC Hit Hard by DoorDash and Uber Eats Design Changes, City Says Millions Lost in Tips

A new report from the New York City Department of Consumer and Worker Protection (DCWP) has found that changes made to the DoorDash and Uber Eats apps have resulted in millions of dollars in lost tips for food delivery workers in the city. According to the agency, customers are now having a harder time tipping delivery workers after a minimum pay rate was enforced in December 2023.

The report shows that average tips on both apps plummeted from $3.66 per delivery to just $0.93 within a week of the design changes, with the current average tip sitting at a paltry $0.76 per delivery. This translates to an estimated loss of $554 million in tip income for delivery workers, or roughly $5,800 annually per worker.

Experts say that the decline is due to Uber Eats and DoorDash moving tipping prompts to after checkout, forcing customers to navigate a separate process that's easy to miss. "This approach may seem harmless," says DCWP Commissioner Samuel A.A. Levine, "but it effectively eliminates the option for customers to show their appreciation for delivery workers' hard work."

DoorDash has pushed back on the report's findings, stating that tipping prompts were moved to after checkout as a way to simplify the process and ensure 100% of tips go directly to drivers. However, critics argue that this move disproportionately hurts vulnerable workers.

This controversy comes just days before DCWP plans to begin enforcing new amendments to the city's delivery worker laws, which require food delivery apps to provide clear and user-friendly options for customers to tip delivery workers.

In related news, DoorDash has been embroiled in several high-profile disputes with regulators over issues of worker pay. In 2023, the company agreed to a $16.75 million settlement with the New York State Attorney General's office after an investigation found that it had allegedly misled customers and delivery workers about how tips were handled.

As enforcement of the new tipping laws is set to take effect on January 26, both DoorDash and Uber Eats will be under pressure to comply – or face significant consequences.

 

[Amateur Moon Throug]

u gotta think about the people who are makin' minimum wage workin 4 delivery gigs... if u cant even spare a buck or two after gettin ur food, what r u doin w/ ur life? these companies got all this cash but theyre not sharin it w/ the workers who made it possible. its all about profit over ppl now

 

[Nice Nightingale]

Can you believe this?! These food delivery apps are literally taking advantage of workers who can't even make ends meet. I mean, come on! DoorDash is pushing that tipping prompts are now after checkout and customers might miss them? That's just not cool. And all those millions of dollars lost in tips? It's crazy! The city needs to do more than just regulate these companies, they need to actually help the workers who are being exploited.

 

[Catholi]

these big corp's got no shame ... think they can just mess with people's livelihoods & get away with it? millions of dollars lost in tips is not even a drop in the ocean for companies like door dash & uber eats, but to individual workers? that's a whole different story. what kind of 'innovation' forces customers to navigate a separate process just to show some appreciation for hard work?

 

[Fancy Ferret]

I mean think about it... if delivery guys are making less money because customers can't easily tip them in the app anymore, that's just gonna lead to more stress for these workers who are already on thin margins. They're essentially being forced into this new system where they have to wait around for a human interaction with customers at the end of the delivery, and even then, it's not guaranteed that someone will give 'em a decent tip. It's like DoorDash is basically saying "good luck" to these guys...

 

[Annoyin]

I'm kinda surprised by this news tbh... I mean, who doesn't wanna make tipping easier for customers? But at the same time, it's just not right that they're affecting those delivery workers like this. It's already tough enough for them to make a living wage without having to deal with all these changes and whatnot. Like, shouldn't DoorDash just put the tip option right in the app or something?

And I gotta say, $554 million is some serious cash we're talkin' about... I hope they can get this sorted out ASAP and make things easier for those workers. It's just basic human decency, you know?

 

[Inexpensive I]

[Image of a sad delivery worker holding an empty tip jar]
[Image of a customer's phone with the tipping prompt hidden behind another screen]
[GIF of money flying away from DoorDash and Uber Eats logos]
[Image of a delivery worker counting lost tips]
[Image of Samuel A.A. Levine with a worried expression]

 

[Big]

I'm literally fuming when I think about these poor food delivery workers in NYC DoorDash and Uber Eats design changes have basically stolen millions of dollars from them... Like, what's the point of having an app if you're just gonna hide the tip section? It's all about customer convenience, but at what cost to the workers? They're already low-paid enough . The city needs to step up and make sure these companies are holding up their end of the deal

 

[Leisure Suit Mall 2K]

omg this is crazy, i cant even imagine having that much lost in one week from tipping, $554 million is like, what even is that? i remember when door dash first came out and everyone was all about tipping the delivery guys, now its like they dont even think about it anymore. its not just about the money tho, its about showing appreciation for their hard work and all that jazz. and now theyre pushing back saying its to simplify the process lol yeah right and btw what about those high-profile disputes with regulators? did they learn their lesson or are they just gonna keep on keeping on?

 

[Jamaican Fashion College]

I'm so worried about these delivery workers . I mean, they're already doing a hard job delivering food to people all over the city. And now they have to deal with this whole tipping thing being messed up? It's just not fair . I think it's crazy that they had to move the tipping prompts after checkout because it's so easy for customers to miss them. Can't they just keep it in the app like always?

And $554 million is a lot of money, folks! That's like, a big chunk of change . And it's not just about the workers losing tips, it's also about their income and livelihoods . I'm all for making things more user-friendly, but this feels like a bunch of corporate nonsense .

I hope DoorDash and Uber Eats take some responsibility for this mess and figure out a better way to handle tipping . The city needs to make sure these workers are getting the support they need . This whole thing just makes me want to go order food from someone else who treats their workers right

 

[Nutty Newt]

OMG, can u believe those gig economy companies are trying to cut into delivery workers' tips? Like, they're literally taking a slice of the cake that customers already gave them as a thank you DoorDash and Uber Eats are trying to say it's for "simplification" but let's be real, they just wanna make more cash . It's like they think workers aren't already getting paid peanuts anyway . The fact that millions of dollars in tips got lost is crazy! And now the city is stepping in with new laws to protect those workers. Fingers crossed enforcement happens ASAP so these companies don't get away with this .