according to a new report released by the city of new york on tuesday, uber eats and doordash delivery drivers in new york city have lost hundreds of millions of dollars due to the way these apps handle tipping.
the new york city department of consumer and worker protection (dcwp) estimates that since december 2023, the apps’ tipping process in new york city has cost gig delivery workers as much as $550 million. december 2023 was the month new york city’s minimum wage law for delivery workers went into effect.
around the same time, uber eats and doordash shifted their tipping options for new york city customers to a post-order payment model.
according to dcwp’s investigation, just one week after the delivery platforms adjusted their terms of service, the average tip received by delivery drivers dropped by 75%, falling from $3.66 to $0.93. the report shows that tips subsequently declined further, averaging just $0.76 per order.
in contrast, on apps that retained the option to pay tips at checkout, the average tip was $2.17.
the report’s conclusions are based on the agency’s analysis of data submitted by delivery apps between july 2023 and june 2025—data that the agencies are required to provide in order to enforce minimum wage standards.
in a statement to business insider, john horton, head of north american public policy at doordash, called the dcwp’s findings on tipping “completely wrong.”
“moving tipping to a post-checkout payment method is nothing new—and it’s certainly not some kind of conspiracy,” he said. “in many aspects of life, that’s how tips are paid.”
horton also pointed out that the report found that, since new york city’s minimum wage law took effect, delivery workers’ total earnings have increased by $1.2 billion.
a spokesperson for uber did not respond to a request for comment on the story.
in its report summary, the dcwp noted that new york city’s new tipping process “is easy to overlook and difficult to navigate.” “before these changes, uber eats and doordash offered new york city consumers a prominent and convenient tipping option.”
the report was released just as a new city law was set to take effect, requiring delivery apps to offer customers the option to pay tips either before or during checkout. both uber and doordash have sued the city over this law, which will go into effect on january 26.
uber and doordash argue that the tipping requirement violates both federal and state laws—including the first amendment to the u.s. constitution.
in a statement released in december, doordash described the requirement as “essentially an additional tax.”
the report states that the dcwp plans to “aggressively enforce this law to ensure that workers receive the compensation they deserve.”
tipping is a primary source of income for gig workers. according to a report by data analytics firm gridwise, in 2024, most delivery drivers’ income came from tips.
update: january 13, 2026 — this article has been updated to include a statement from doordash.
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