Uber and DoorDash are taking legal action against a new New York City law designed to incentivize tipping on food delivery applications. Both companies have initiated a joint federal lawsuit just before the law is slated to take effect next month, according to reports from The New York Times.
In 2023, several food delivery apps in NYC altered their tip suggestion process, moving it to the end of the checkout experience—similar to how rideshare apps operate. This change followed the city’s decision to implement a minimum wage for food delivery workers, a pioneering move in the United States. The new legislation reverses the tip suggestion back to the checkout stage, recommending a ten percent tip, while still allowing customers to opt for no tip if they choose.
Uber and DoorDash argue that this law infringes upon their First Amendment rights by compelling them to deliver a government-mandated message. They also contend that the regulation may deter users from engaging with the app due to a phenomenon known as “tipping fatigue.” While consumer sentiment varies, there is growing frustration regarding the additional fees associated with food delivery, rather than tipping practices.
The shift in the tip suggestion field has reportedly led to a decrease in tips for NYC food delivery workers, making it easier for customers to overlook the option when they are distracted. Ligia Guallpa, co-founder of the Workers Justice Project, emphasized that minimizing tipping opportunities keeps workers in a cycle of poverty and forces them to depend on accepting more orders.
Despite these challenges, the food delivery market in New York City continues to thrive, with expenditures surpassing $265 million in the first half of 2025, compared to $183 million during the same timeframe in 2022. Current estimates indicate that roughly 80,000 delivery workers are operating within the city.
The tipping law has become a focal point in recent mayoral discussions. Mayor-elect Zohran Mamdani expressed his support for providing customers the choice to tip at checkout, while DoorDash’s financial contributions have backed Mamdani’s competitor, former Governor Andrew Cuomo.
