DoorDash and Uber Eats are facing new criticism after New York City officials accused the companies of blocking delivery workers from earning more than $550 million in tips.
The allegation centers on a change made in December 2023, when both apps required customers to leave tips only after checkout instead of before placing an order.
According to a new report released Tuesday by the New York City Department of Consumer and Worker Protection (DCWP), the policy led to a sharp drop in tipping.
The agency estimates that delivery workers lost an average of $5,800 per year because of the change.
Officials say the timing mattered, as the policy began the same month the city increased minimum pay for app-based delivery workers, which now stands at $21.44 an hour.
According to the NY Post, the report found that one week after the new tipping system began, average tips on Uber Eats and DoorDash fell from $3.66 per delivery to just 93 cents.
Over time, that number dropped further to 76 cents. By comparison, workers on apps like Grubhub, which still allow tips at checkout, earn an average of $2.17 per delivery.
DCWP Commissioner Samuel Levine said the findings "blow the whistle on a massive scheme by Uber and DoorDash to drive down worker pay."
DoorDash, Uber Eats erased $550M in delivery worker tips in NYC, Mamdani administration alleges https://t.co/rU0IzxkQBl pic.twitter.com/8VUZJWqphX
— New York Post (@nypost) January 13, 2026
DoorDash Calls City Report on Tips
The agency also said the new tip option is "easy to miss and difficult to navigate," making it harder for customers who want to tip.
DoorDash strongly denied the claims. John Horton, the company's head of North America public policy, said the report's findings are "flat out wrong."
He argued that tipping after checkout is common in many situations and pointed out that total worker pay increased by $1.2 billion since the city's minimum pay law took effect, BusinessInsider reported.
Uber Eats did not immediately respond to requests for comment.
The issue is now tied to a larger legal fight. Uber Eats and DoorDash are suing New York City over a new law set to begin January 26.
The law requires apps to show tipping options at checkout, with a default suggestion of at least 10%.
The companies argue the rule violates their free speech rights and compare required tipping prompts to a tax on customers.
City leaders disagree. Council Member Shaun Abreu, who sponsored the law, said, "If someone wants to tip them, they shouldn't have a hard time doing it." He added that no one is forced to tip, but making it harder is wrong.
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