Gig Workers in NYC Miss Out on Substantial Tips Due to App Changes

Recent adjustments in the way Uber Eats and DoorDash manage customer tips have resulted in a significant decrease in earnings for delivery workers in New York City, according to a new city report.

The New York City Department of Consumer and Worker Protection (DCWP) disclosed that these changes resulted in delivery workers losing roughly $550 million in tips since December 2023. This coincided with the enforcement of the city's minimum pay legislation for gig workers.

Impacts of Tipping Policy Changes

At the same time that the minimum pay law took effect, the apps implemented a policy change requiring customers to finalize their orders before having the option to tip. This led to a steep 75% drop in average tips per delivery, initially dropping from $3.66 to $0.93, and later settling at $0.76.

In contrast, other services that allow tipping during the checkout process reported an average tip of $2.17, highlighting the disadvantage introduced by the policy shift.

Report Findings and Legal Developments

The DCWP's analysis was based on data covering July 2023 to June 2025, a period during which data submission from these delivery platforms is mandatory for adherence to minimum wage enforcement.

Following reportage on the tipping changes, spokespeople for Uber and DoorDash have yet to provide comments. Meanwhile, the DCWP described the modified tipping system as not user-friendly and challenging for patrons to navigate.

Anticipating New Regulatory Measures

A forthcoming regulation mandates that apps present tipping options either before or during the transaction completion. This law takes effect on January 26, but has met opposition from both Uber and DoorDash, who have pursued legal action arguing that the requirement infringes on laws, including the First Amendment of the U.S. Constitution.

DoorDash described this tipping rule as akin to an additional tax in a public statement issued last December.

Enforcement and the Importance of Tips

The DCWP has committed to rigorous enforcement of the new tipping law, emphasizing its critical role in ensuring fair compensation for gig workers.

According to data analytics firm Gridwise, tips have remained a substantial part of delivery workers’ income, signaling the importance of protecting and enhancing tipping practices in the industry.