Uber Eats and DoorDash workers could see a bump from New York City's new tipping law. The companies say it'll hurt them.

"Starting January 26, food delivery apps, including DoorDash and Uber Eats, will have to display for customers the option to tip a courier when they pay under city law. It comes roughly two years after some companies moved the tipping option to after an order is delivered."

"Under New York City's new law, the apps will also have to set the default gratuity to 10% at checkout. "It's not difficult for them to do it, they used to do it, they have the tech to do it immediately," Elizabeth Wagoner at the city's Department of Consumer and Worker Protection told Business Insider in an interview. Uber and DoorDash have unsuccessfully fought the law"

"The DCWP estimated earlier this month that delivery workers in the city have missed out on $550 million in tips since December 2023 as a result of companies moving the tipping option to after delivery."

Beginning January 26, food delivery apps such as DoorDash and Uber Eats must display a tipping option at checkout and set a default gratuity of 10%. Customers retain full control to change or skip the tip. The city estimates delivery workers lost about $550 million in tips since December 2023 after some companies moved the tipping option until after delivery. The Department of Consumer and Worker Protection will monitor compliance and pursue legal action if needed. Uber and DoorDash have challenged the law in court and warned it could reduce orders. The measure targets improved pay for delivery workers.

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