Delivery tips in the crosshairs (again)
A new NYC lawsuit, TBPN, and Uber's founder renew scrutiny of in-app tipping.
Uber and DoorDash sued New York City in federal court last week over tipping laws set to go into effect in January. The regulations force delivery apps to prompt customers for courier tips at checkout, setting the default tip at 10% of the total. In a December 11 filing, the companies argue that this regulation would compel them to “advocate for and implicitly endorse the City’s preferred message,” including that customers should commit to tipping delivery workers before the delivery is completed, and that 10% is considered an appropriate amount.
It’s the latest front in the battle between the apps and the biggest city in the country, where restaurant delivery was long a way of life before the modern tech-based gig economy came to town. More than any other US city, New York has worked to rein in big delivery through legislation as the companies themselves fight any perceived imposition.
The apps have shown that they’re willing to fight any regulatory push. Beyond the alleged checkout intrusion, the filing seems to take issue with the fact that the mandate encourages customers to tip at all, a sentiment that DoorDash echoed in a blog post about the lawsuit:
“In the midst of an affordability crisis, the New York City Council has turned tipping into essentially an added tax by forcing platforms like DoorDash to pressure consumers to tip at checkout… A reminder to tip is a courtesy, a forced solicitation of a tip may as well be a tax.”
It continues:
“We do not disagree with policies that ensure Dashers are paid fairly. We disagree with policies that unfairly pressure consumers and remove our options to bring balance to ordering experience.”
The delivery apps have plenty of beef with the way New York City wants to regulate their services.