New York City delivery workers for apps like DoorDash and Uber Eats are now receiving a meager 76 cents per order in tips, a staggering $3 decrease from just a few years ago. This sharp decline in gratuities, detailed in a recent report by the city’s Department of Consumer and Worker Protection, has led to a significant drop in earnings for couriers. The report indicates that after restaurant apps modified their customer tipping processes, tips for food delivery couriers plummeted by over $550 million.
This shift in tipping practices has had a profound impact on the daily earnings of delivery professionals. While Uber Eats and DoorDash workers averaged a more substantial $3.66 per delivery in November 2023, that figure has now fallen to a mere 76 cents. This has occurred despite a notable increase in the total pay for these workers, which rose by $1.2 billion following the enforcement of a minimum pay rate for restaurant app workers in December 2023.
What is the current average tip for DoorDash and Uber Eats couriers in New York City? The average tip for DoorDash and Uber Eats couriers in New York City is currently just 76 cents per order, a significant decrease from previous years.
Before the implementation of the minimum pay rate in December 2023, couriers were earning approximately $11.12 per hour, including tips, according to a November 2022 study. The introduction of a minimum pay rate last spring dramatically increased their hourly earnings to $21.44. Despite this victory for hourly wages, the city remains committed to improving the tipping process for delivery personnel.
The Department of Consumer and Worker Protection has accused DoorDash and Uber Eats of deliberately altering their platforms to make it more difficult for customers to leave tips for delivery workers after the minimum pay rate was enforced. The department highlighted that consumers could only leave tips after checkout, and the process was designed to be easily missed and harder to navigate.
To address this issue, new amendments have been incorporated into the city’s delivery worker laws. These amendments mandate that delivery apps must provide New Yorkers with an option to tip during the checkout process. Customers will have the choice to select a 10 percent tip or enter a custom amount directly on the platforms.
These new requirements are set to take effect on January 26. The Department of Consumer and Worker Protection estimates that if the apps adopt the same tipping options they utilize in other regions for New York City, it could boost delivery worker earnings by an additional $390 million annually.
John Horton, DoorDash’s head of North America public policy, presented a different perspective, stating that Dashers in New York City earn an average of nearly $30 per hour before tips while on delivery, exceeding the earnings of many first responders. He argued that moving tipping to after checkout is a common practice and not an attempt to deceive customers.
Horton suggested that the DCWP’s actions are an effort to pressure consumers into tipping more, asserting that mandatory tipping is akin to a tax and should remain a consumer’s choice, not a political mandate.
In response to these new requirements, both DoorDash and Uber have initiated legal action against the city. The Independent has reached out to Uber for their official statement on the matter.
This ongoing dispute highlights the complex relationship between delivery platforms, workers, and city regulations, with significant implications for the future of gig economy work in major urban centers. The debate over tipping practices and minimum wage enforcement continues to be a critical issue for delivery couriers navigating the economic landscape of New York City.
The push for better tipping options is crucial for ensuring that delivery workers receive fair compensation for their services. The new amendments aim to restore a more equitable tipping system, benefiting those who provide essential delivery services across the city.
The legal challenges filed by DoorDash and Uber indicate a strong resistance to the new regulations, setting the stage for a potentially lengthy legal battle over worker protections and platform responsibilities.
