DoorDash and Uber Sue New York City Over Mandatory Checkout Tipping Law
DoorDash Inc. and Uber Technologies Inc. have filed a joint lawsuit against New York City, aiming to block new legislation that requires delivery apps to present tipping options at checkout, set at a minimum suggested rate of 10%. The companies argue the upcoming rule could further strain consumers already grappling with an affordability crisis.
Set to take effect in late January 2026, the contested law was enacted in response to changes DoorDash and Uber made following the city’s implementation of a minimum-wage rule for delivery workers in 2023. In an effort to offset the impact of mandated pay increases at that time, the companies increased service fees and moved in-app tipping to after checkout; a change that made initial delivery costs appear lower to customers.
Announcing the lawsuit in a statement published Thursday on DoorDash’s website, the companies framed the legislation as a burden to consumers and a misstep in city policy. “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,” the company stated.
While the law does not require consumers to tip, it does mandate that the tipping option be presented before completing a purchase and that the suggested amounts meet a minimum standard. DoorDash criticized this structure, noting, “A reminder to tip is a courtesy, a forced solicitation of a tip may as well be a tax.”
The companies defend their current practice of reminding customers to tip after delivery, arguing that the flexibility gives them tools to keep delivery services accessible without overburdening users at the point of sale. “We disagree with policies that unfairly pressure consumers and remove our options to bring balance to ordering experience,” DoorDash said. “It should be up to consumers, not the City Council, whether they want to leave a tip in New York.”
DoorDash emphasized that delivery workers are already receiving competitive pay under existing rules. According to the company, “Dashers in New York are guaranteed to earn $21.44 per hour while on delivery, more than many first responders in the city. In fact, they earn much more than that - almost $30 per hour while on delivery, before tips.”
Uber joined the suit, sharing concerns that the mandated changes could lead to what it sees as sticker shock, deterring consumers from ordering through the platforms. Both companies say they support fair pay for workers but argue that the mandated tipping interface is not the appropriate mechanism.
“The costs of facilitating delivery in New York City are 95% more expensive than the national average,” DoorDash added. “Despite this, the City Council has dedicated countless hours and seemingly endless resources to passing bills that drive up delivery costs. It’s time to say enough is enough.”
The lawsuit, which had not yet appeared in court records as of Thursday afternoon, seeks to overturn the law before its scheduled implementation. For now, DoorDash and Uber maintain that tipping should remain a voluntary, post-delivery gesture, and are calling for the repeal of what they describe as an overreach in consumer interaction.
“This lawsuit is about restoring fairness and affordability to New York City’s delivery market,” DoorDash concluded.