Get All Access for $5/mo

DoorDash, Uber Eats Changes Tipping Policy After Adding New Fees for Customers The new minimum wage laws in New York City are forcing the delivery platforms to make changes.

By Emily Rella

Digital tipping prompts have become a point of contention for many customers across a variety of industries, especially when it comes to food service.

On food delivery platforms, such as DoorDash and Uber Eats, customers are prompted to select their tip amount before their order is even processed or delivered.

Now, due to a new minimum wage law being passed, customers in New York City will be able to hold off on tipping until after their food has been delivered.

Related: Doordash Is First to Offer an Hourly Pay Option For Drivers

Currently, NYC requires a $17.96 minimum hourly wage for food delivery workers, which went into effect this past summer, with a second minimum wage hike expected to go into effect by April 2025.

However, DoorDash and Uber Eats drivers in NYC are now paid just under $30, as set by both the delivery platforms per "active hour" on the clock, which is the time workers are physically picking up and delivering food orders — and not when drivers are waiting for new orders to come in.

Before the new pay structure, delivery drivers for the food services were able to be paid based on orders fulfilled each shift, making as much to as little each time they clocked in based on preference and how busy their routes were.

Customers in NYC can expect to encounter higher fees to offset the cost.

Related: Customer Exposes 'Crazy' Fees on DoorDash Order

"These new regulations will force us to raise fees for orders in New York City. To better balance the impact of these new costs, we're moving the option to tip in the DoorDash app to after checkout," DoorDash said in a statement. "We know tips are still an important way for consumers to show Dashers their appreciation, so consumers will still be able to tip after checkout and for up to 30 days after they order. As always, 100% of a consumer's tip goes to the Dasher."

One such fee on Uber Eats is the City of New York Courier Fee, which is roughly an additional $2 per $30 spent.

Uber Eats and DoorDash did not immediately respond to Entrepreneur's request for comment.

Emily Rella

Entrepreneur Staff

Senior News Writer

Emily Rella is a Senior News Writer at Entrepreneur.com. Previously, she was an editor at Verizon Media. Her coverage spans features, business, lifestyle, tech, entertainment, and lifestyle. She is a 2015 graduate of Boston College and a Ridgefield, CT native. Find her on Twitter at @EmilyKRella.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

How to Be a Billionaire By 25, According to a College Dropout Turned CEO Worth $1.6 Billion

Austin Russell became the world's youngest self-made billionaire in 2020 at age 25.

Living

Taylor Swift Has a Lucky Number. And She's Not the Only High Performer Who Leans Into Superstitions to Boost Confidence.

Even megastars like Swift need a little extra something to get them in the right mindset when it is game time.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Marketing

SEO Trends You Need to Be Aware of Right Now, According to a Seasoned Pro

Navigate the future of search engine optimization to elevate your online presence and drive meaningful engagement.