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PoliticsNYC Mayor Mamdani: Crackdown on deceptive tipping by delivery apps nets workers $2,287 more annually
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New York City Mayor Zohran Mamdani announced that the city's crackdown on deceptive tipping practices by food-delivery platforms like Uber Eats and DoorDash has resulted in an additional $104 million in tips for delivery workers since January. Mamdani stated that the city forced these corporations to change their apps after they hid tip buttons and set default tips below 10%, causing a 79% drop in tips. The city reports that tips have doubled since the protections took effect, with 70,000 delivery workers on track to earn an average of $2,287 more annually. Mamdani emphasized that this is only the beginning, noting a $5 million settlement with Uber Eats and increased funding for enforcement. He declared that the days of accepting corporate abuse are over, signaling further actions against delivery apps.
Source report
New York City Mayor Zohran Mamdani is continuing his push against food-delivery apps, touting a new city report that shows a crackdown on deceptive tipping practices has resulted in an additional $104 million in tips for delivery workers since January.
Key Findings
- Uber Eats and DoorDash had been hiding tip buttons and setting default tips below 10%.
- Tips for delivery workers fell by 79% as a result of these practices.
- The city forced the companies to change their apps in January.
"Uber Eats and DoorDash hid tip buttons and set default tips below 10%. As a result, tips for delivery workers fell 79%," Mamdani wrote on X. "In January, we made these corporations change their apps."
"This is only the beginning," he added, signaling further action to improve conditions for workers on delivery platforms.
Impact on Workers
According to the city:
- Tips have doubled since the tipping protections took effect in late January.
- The city's 70,000 delivery workers are on track to each earn an average of $2,287 more in tips annually.
Broader Enforcement Efforts
At a press conference, Mamdani framed the announcement as part of a larger push to hold delivery apps accountable:
"Today's $104 million victory is part of city hall's larger effort to hold delivery apps and mega corporations accountable."
He also highlighted:
- A $5 million settlement reached in January requiring Uber Eats and other delivery apps to pay back wages, some of which went to delivery workers.
- An additional $4 million in funding for the Department of Consumer and Worker Protection in June to increase staff and enforcement of worker protection laws.
"The days of city hall accepting corporate abuse as the cost of doing business here in New York City are over," Mamdani said. "I am confident that more wins are on the way."
Response from Delivery Apps
DoorDash and Uber did not immediately respond to requests for comment.
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NYC Mayor Mamdani Hints at Continued Crackdown on Delivery Apps Like Uber Eats and DoorDash