Key facts
- New York City's crackdown on deceptive tipping practices by food delivery platforms has resulted in an additional $104 million in tips for delivery workers since January.
- The city mandated changes to app interfaces in January, which led to tips doubling.
- Delivery workers in the city are projected to earn an average of $2,287 more in tips annually.
- A January settlement required Uber Eats and other delivery apps to pay over $5 million.
- The city increased funding for the Department of Consumer and Worker Protection by over $4 million to enhance enforcement.
New York City Mayor Zohran Mamdani announced that a crackdown on deceptive tipping practices by food delivery platforms has resulted in an additional $104 million in tips for delivery workers since January. Mamdani stated on X that platforms like Uber Eats and DoorDash previously hid tip buttons and set default tips below 10%, causing a 79% drop in tips. Following app changes mandated in January, tips have doubled, and the city's 70,000 delivery workers are on track to earn an average of $2,287 more in tips annually.
At a press conference, Mamdani highlighted the $104 million gain as part of a broader effort to hold delivery apps and large corporations accountable. This includes a January settlement requiring Uber Eats and other delivery apps to pay over $5 million, with a portion distributed to delivery workers. To bolster enforcement of worker protection laws, the city increased funding for the Department of Consumer and Worker Protection by over $4 million in June.
Mamdani asserted that "the days of city hall accepting corporate abuse as the cost of doing business here in New York City are over," indicating that further actions against such platforms are anticipated.