DoorDash and Uber have launched a joint legal effort to block New York City from enforcing new rules that would require food-delivery apps to display a tipping option during checkout — and to set that tip at a minimum of 10%. The companies argue that the mandate interferes with how they manage their platforms and could deter customers at a time when rising costs have already made delivery orders more expensive.
The rule, scheduled to take effect on January 26, was created as part of the city’s ongoing effort to strengthen protections for the thousands of app-based delivery workers in the five boroughs. The measure was introduced after the companies made sweeping changes to their pricing structures following the city’s 2023 minimum-wage requirement for delivery workers. When that pay standard took effect, the apps increased service fees to offset higher labor costs and shifted the tipping prompt to appear only after checkout, allowing initial order totals to seem lower.
The new law aims to counter that practice by ensuring customers see the full cost of their order up front, including a suggested tip.
Companies Say the Mandate Violates Their Right to Communicate With Users
In their lawsuit, DoorDash and Uber assert that the new rules violate their First Amendment rights because they dictate how the companies must communicate about tipping within their apps. The platforms argue that the government is compelling them to present a specific message — one that encourages tipping — at a specific moment in the customer journey. Their complaint describes tipping as a voluntary gesture and claims that forcing a default suggestion at checkout undermines their ability to design an experience they believe is most transparent and balanced for users.
By requiring the companies to display a tipping prompt at the beginning of an order and assigning a minimum percentage, the lawsuit argues that the city is taking control of in-app space and effectively scripting part of their customer communication. The companies say this oversteps the city’s authority and infringes on core constitutional protections involving commercial speech.
A representative for Uber declined to comment on the case.
Part of a Long-Running Dispute Over Delivery Worker Pay
This legal fight is the latest chapter in a tense and ongoing standoff between delivery platforms and New York City over how to regulate the growing gig-delivery sector. In 2023, DoorDash and Uber unsuccessfully tried to block the city’s minimum-wage rule, which now guarantees delivery workers at least $21.44 per hour. That policy significantly changed the financial framework of app-based deliveries, prompting companies to rethink their business models and pricing.
The city’s Law Department said it had not yet reviewed the lawsuit and would evaluate the filing once it was formally received.
Tipping Falls While Fees Surge Under New Pricing Models
Data submitted to the city by the delivery platforms and reviewed by Bloomberg illustrates how consumer behavior has shifted since the minimum-wage standard took effect. Over the past year, customers tipped 64% less than before the rule was implemented. At the same time, they paid roughly 45% more in fees per order due to higher service charges and the platforms’ decision to move the tipping prompt to later in the checkout process.
These changes have deeply affected delivery workers’ income structure. Before the wage rule was introduced, tips accounted for half of many workers’ earnings. By the second quarter of 2025, tips made up just 13% of hourly earnings. While total pay increased thanks to the city-mandated minimum, the decline in tips dramatically altered workers’ expectations and shifted most of their earnings from customers to the companies themselves.
Companies Warn the New Rules Could Reduce Orders Further
DoorDash and Uber argue that the city’s new tipping requirements will worsen financial pressures on their business. They claim that any mandate forcing higher apparent upfront costs risks driving customers away, particularly in a period when delivery prices are already climbing. DoorDash noted through public statements that it anticipates millions of dollars in projected losses over the next year in New York City due to fewer orders.
The companies maintain that more rigid rules on pay, tipping, and app design increase operating costs, which they say eventually fall back on customers and reduce workers’ opportunities. The industry commonly frames these disputes as a question of balance — between fair pay, affordable delivery, and sustainable operations.
Instacart Sues the City Over Similar Rules
The tensions extend beyond restaurant delivery. Earlier this month, Instacart filed its own lawsuit against New York City over a package of labor standards for grocery-delivery couriers. These rules mirror many of the same issues raised by restaurant-delivery platforms, including minimum pay requirements and tipping regulations. The rash of legal challenges highlights the friction between local governments pursuing gig-worker protections and companies seeking more flexibility in how they structure compensation.
