Uber and DoorDash are challenging a forthcoming NYC law that encourages tipping on food-delivery apps, as reported by The New York Times. The two entities have filed a joint federal lawsuit just ahead of the ruling going into effect next month.
Back in 2023, many food delivery apps in the city moved the tip suggestion box to after purchases had been completed. This is sort of how rideshare apps work. It followed NYC mandating a minimum pay rate for food delivery workers, the first in the country. The new law simply switches the tip suggestion box back to checkout, with a suggestion of ten percent. Customers are still free to set it to zero, if that's their thing.
The two companies say this law violates the First Amendment by requiring them to "speak a government-mandated message." They also say the rule would cause customers to use the app less because they were suffering from "tipping fatigue." As a customer of food delivery apps, I am not stricken with tipping fatigue. I have, however, come down with a serious case of "what are all of these mysterious fees on my bill and why is my burrito $45?" fatigue
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