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
Opinions expressed by Entrepreneur contributors are their own.
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.
