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The Almighty Buck

Uber and DoorDash Try To Halt NYC Law That Encourages Tipping (nytimes.com) 208

An anonymous reader quotes a report from the New York Times: Two of the largest food-delivery app companies have made a last-ditch effort to overturn tipping laws in New York City that go into effect in January just as its next mayor, who has been highly critical of the companies and the app industry, takes office. Tips to delivery workers have plummeted since some food-delivery apps switched to showing the tipping option only after a purchase had been completed; that change came after New York City established the country's first minimum pay-rate for the workers in 2023. The new laws will require the apps to suggest a minimum tip of 10 percent at checkout, though customers can contribute more or less, or nothing at all.

Two of the app companies, DoorDash and Uber, filed a joint federal lawsuit in the Southern District of New York late last week targeting the City Council legislation, arguing that the new rules violated the First Amendment by requiring them to "speak a government-mandated message" and exceeded the Council's authority. Although tipping will be optional under the law, the companies wrote in the suit that a "mandated pre-delivery 10 percent tip suggestion" would cause customers to use the app less because they were suffering from "tipping fatigue." "Lessened engagement would result in fewer orders," the suit said.

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Uber and DoorDash Try To Halt NYC Law That Encourages Tipping

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  • by eggstasy ( 458692 ) on Wednesday December 17, 2025 @09:04AM (#65863775) Journal

    Works well for the rest of the world. Like the metric system, and everything else that is not retarded.

    • by EvilSS ( 557649 ) on Wednesday December 17, 2025 @09:20AM (#65863807)

      Works well for the rest of the world. Like the metric system, and everything else that is not retarded.

      This. Raise prices by 30% across the board and use it to pay them. Then everyone will be happy.

      • I'm 100% in favor of that. I want the true cost in my purchase. End the dark patterns of giving me a bunch of 'discounts' then asking me to tip on the 'orignal price' which is already more than the store charges, then charge me a delivery fee on top.

        If I'm paying a delivery fee, why does the food cost more before the fee? What part of the fee is funding the delivery? Is this like a convenience fee? Who exactly is getting the convenience?

        • by ShanghaiBill ( 739463 ) on Wednesday December 17, 2025 @10:18AM (#65863979)

          If I'm paying a delivery fee, why does the food cost more before the fee? What part of the fee is funding the delivery?

          It is standard marketing psychology.

          People will pay X for food and Y for delivery, but won't pay (X+Y) for the food with free delivery.

          When people comparison shop, they will compare the food cost but ignore the delivery fee. So it is better to shove some of the cost into tack-on fees.

          UberDash wants the tip to come after the customer commits to buy so the cost of the tip isn't factored into the decision.

          • If I'm paying a delivery fee, why does the food cost more before the fee? What part of the fee is funding the delivery?

            It is standard marketing psychology.

            People will pay X for food and Y for delivery, but won't pay (X+Y) for the food with free delivery.

            When people comparison shop, they will compare the food cost but ignore the delivery fee.

            With the gross abuse of "fees" being added on to damn near everything in our lives, one would think consumers would be more wise to that by now.

            This mentality shopping for a new car would mean an ignorant consumer is only looking at the factory sticker (X), worries about tax "later" (Y), and assumes that other stealership sticker is just a coupon for a free fruit basket.

          • Haven't you figured out that the delivery companies promote tipping to avoid paying the driver, part-time/independent//whatever, full value?

            And haven't you also figured out that the drivers believe they are entitled, and above reproach, for demanding a tip sufficient to satisfy their demands...?

            And haven't you seen a few examples of drivers who, having not received their deserved tip, destroy or keep the delivery. Amazing to me they think this is tolerable.

            • And haven't you seen a few examples of drivers who, having not received their deserved tip, destroy or keep the delivery. Amazing to me they think this is tolerable.

              Turn them into employees already and start the requisite discipline. You're describing companies with no HR and no HR policy. Real Lord of the Flies bullshit right there, with tolerated results.

              Perhaps restaurants need to re-hire drivers directly. Boycott the Fly Lords. With arrogance like that, I'd certainly promote the business that goes that route with my patronage. At least I know that's an employee who is more subject to answer to corporate FAFO policy. And a business who respects their employees

          • So basically the company is deceiving the consumer about the price, and the people who deceive better win. So yes get rid of tips.

            I have no problem for tipping for exceptional service, but if its standard it should be included in the price. Of course when I am in the US I tip because I know how the system works and its unfair to the people doing the service not to but I still think it sucks.

        • Actually, lemme tell ya a secret - if I get a discount, comp, freebie at a restaurant, even a loyalty reward., I tip on the actual value of the meal(s). It's fair.

      • by mjwx ( 966435 ) on Wednesday December 17, 2025 @09:29AM (#65863829)

        Works well for the rest of the world. Like the metric system, and everything else that is not retarded.

        This. Raise prices by 30% across the board and use it to pay them. Then everyone will be happy.

        That's pretty much why these scummy companies are fighting it. We all know tipping in the US is mandatory in all but law, it's culturally obligatory which bears little difference to a legal mandate. Companies like to keep it this way so they can pretend their bill is lower, thus enticing people in with prices that don't accurately reflect what it will actually cost the payer. Uber et al. want to exploit this as much as they can by presenting the pre-tip price on payment and then adding the tip option so it feels like you're paying less than you are (yes, this actually works and works quite well.. Victor Gruen is famous for making a career out of things that fool consumers but shouldn't).

        • Works well for the rest of the world. Like the metric system, and everything else that is not retarded.

          This. Raise prices by 30% across the board and use it to pay them. Then everyone will be happy.

          That's pretty much why these scummy companies are fighting it. We all know tipping in the US is mandatory in all but law, it's culturally obligatory..

          It's not THAT obligatory. My face isn't on the evening news if I don't tip my pizza guy. No one is going to hunt you down and blacklist you from their restaurant if you don't tip. In fact, I doubt that has ever happened. After decades of cultural trainwashing.

          Ironically enough, the only likely way to send the message to scummy companies and eliminate +tips positions paying less than minimum wage, is to stop tipping. Otherwise, you're literally sponsoring the problem as a pseudo-business partner every t

          • It's not YOUR temporary sacrifice, and the laws would have to change in most states in order to not completely fuck over the people working sub minimum wage jobs.

            The real answer is to change the laws first so that these people would be making AT LEAST minimum wages, but there's a lot of lobbying by shitty companies that make this unlikely to happen.

            If you're in the U.S.A. and you're not tipping the people making less than minimum wage, then you're either unaware of what sub minimum wage is, or you're
            • Re: (Score:2, Interesting)

              by Ol Olsoc ( 1175323 )

              If you're in the U.S.A. and you're not tipping the people making less than minimum wage, then you're either unaware of what sub minimum wage is, or you're a sociopath.

              I've always tipped around the 100 percent level. Sometimes at way more than that. I've done okay in life money wise, and don't mind spreading that around a little.

              A side effect - although I don't do it for it, is the you are treated very well. If going into a restaurant we frequent, the staff gives a bump in the service. My table is ready, and the drinks are on the table. The waitstaff can see out to the parking lot, so when they see that gray Jeep pull in, they get ready. The wife orders sub sandwiches

            • If you're in the U.S.A. and you're not tipping the people making less than minimum wage, then you're either unaware of what sub minimum wage is, or you're a sociopath.

              Yes, I'm well aware of sub-minimum wage problem. You're right. Pass legislation that takes effect in a year or two, and give business time to adjust and eliminate those positions is one possible solution. Or simply use the same Cultural Guilt that perpetuated tipping into the it's-everywhere shit it is today and start reversing the trend. Reward businesses that actively discourage tipping with patronage being fully aware of your price out the door sans guilt or shame sprinkles, knowing their employees a

              • Your sociopath comment is fair, but I would say that most of these jobs are tied to things services that are not basic necessities.

                If you're willing to consume luxury services yourself, but not willing to contribute a reasonable amount to the people who provide those services, then you quite possibly are displaying a remorseless lack of empathy and disregard for others' feelings...meaning you're a sociopath.

                The "I got mine" attitude people display these days is sociopathic.
            • The real answer is to change the laws first so that these people would be making AT LEAST minimum wages, but there's a lot of lobbying by shitty companies that make this unlikely to happen.

              If you're in the U.S.A. and you're not tipping the people making less than minimum wage, then you're either unaware of what sub minimum wage is, or you're a sociopath.

              I agree with the first part, but how am I supposed to know if the person helping me is making sub minimum wage? There are no signs saying that. I really can't assume either way. Then again, this is why I don't do delivery services. If I want something, I might order online, but then I get in my car and go get it, even if that's a little inconvenient.

              Honestly, I wished we went to no tipping at all in the US (unless you want to reward for truly exceptional service). I've traveled to Europe and got reasonable

        • by DesScorp ( 410532 ) on Wednesday December 17, 2025 @11:27AM (#65864289) Journal

          We all know tipping in the US is mandatory in all but law, it's culturally obligatory which bears little difference to a legal mandate.

          Uh, no, it isn't. Post COVID, some companies are trying to guilt trip customers into tipping all employees in every job... I'm looking at you, fancy-pantsy coffee shops like Starbucks, Dutch Brothers, 7-Brew, etc.... but the vast majority of employees do not ask for nor receive tips as part of their jobs in America. And in jobs where I'd like to tip them for extra service.... grocery pickup, for instance... they're generally not allowed to ask for or receive tips.

          Tipping is fine for waitressing, because if the service is good they can make considerably more money. But the post-COVID attempt by some companies to normalize tipping in their industries never took off in the US. Americans resented the push and saw it for what it was.

        • That's pretty much why these scummy companies are fighting it. We all know tipping in the US is mandatory in all but law, it's culturally obligatory which bears little difference to a legal mandate. Companies like to keep it this way so they can pretend their bill is lower, thus enticing people in with prices that don't accurately reflect what it will actually cost the payer. Uber et al. want to exploit this as much as they can by presenting the pre-tip price on payment and then adding the tip option so it feels like you're paying less than you are (yes, this actually works and works quite well.. Victor Gruen is famous for making a career out of things that fool consumers but shouldn't).

          What is "culturally obligatory"? Are you THAT subject to peer pressure? If you don't, or do, want to do, or say, something f*&k other people's opinions. Learn to stand up and be an individual for shit's sake.

          • If society is built around tipping, and youbknow that, then you're "an individual" that punches down if you don't. You're literally the baddie. That is unless.yoh limit yourself to exclusively purchase from.establishments that you know for a fact pay a living wage. Do you?

      • And you have to go 30%.

        The employer may, if they are ethical, forward the 20% portion to the employee. 20% was the tipping standard before tipping culture in America became fascist.

        Then the employer will keep the 10% portion, if for no other reason, out of spite.

        I've been seeing the 30% standard being injected into otherwise reasonable messaging. Nope. I do not tip for ordering and receiving while standing. if clerking demands a tip, am I tipping my clerk at the Skechers* store? No I am not.

        * - This is a bl

      • Since the Fed has printed well over 500% more base money since 2008 and inflation has been 50% why not print 300% more for income support to get the same 30% inflation you want, while individuals gain ten times more real purchasing power?

        What is wrong with printing faster than prices rise?

    • +1, working on tips or commissions is a sucker's game for temporarily embarrassed millionaires.
    • Except Uber, Doordash, Instacart, etc don't think of gig workers as people. Definitely not employees. They're parts of a system that is continuously being optimized for increased revenue. While they're trying to optimize the shopper/driver experience to make sure they make as little money as possible without quitting, they're doing R&D on projects to replace the people in the system altogether.

  • by king*jojo ( 9276931 ) on Wednesday December 17, 2025 @09:32AM (#65863843)
    payment information (except in cases where they're trying to defraud the consumer). So doordash, etc will probably win.

    You CAN force a company to pay an employee a minimum amount, so maybe they should concentrate on that instead.

    btw I laughed at the “mandated pre-delivery 10 percent tip suggestion” would cause customers to use the app less because they were suffering from “tipping fatigue.” that the companies state in the suit. They make money from the extremely lazy. The extremely lazy also tend to be extremely cheap. Encouraging them to continue being both means they'll keep using the product.
    • by Targon ( 17348 )

      This is about tipping, not about normal payment information. The idea of having proper wages for drivers, can you really be against that? On the flip side, it's weird that tips aren't being given because people aren't being asked to give the tip until after service has been given, so I'm not sure why tips have dropped off.

      • This is about tipping, not about normal payment information.

        It's about where during the transaction they give the option for gratuity. Currently, you pay for the food, then the option for gratuity is presented. The law is trying to force companies to present that option at the same time as paying for the food.

        It's about placement, not tipping. The option for gratuity hasn't been eliminated, it's just been placed after the payment for the service itself. As and far as I know, one can mandate by law exactly when someone requests a gratuity.

        Some regard a 'tip' as 't

      • I order food delivery on a one-time-per-week basis. Usually when I do it, I order and then totally dismiss the app, just waiting the food to arrive. I don't open the app again until next order. So, in my case, any asking for tips after the service would just be completely ignored.

        • Usually when I do it, I order and then totally dismiss the app, just waiting the food to arrive. I don't open the app again until next order. So, in my case, any asking for tips after the service would just be completely ignored.

          Which is what 99% of their customers do, which is why they placed the gratuity option after payment for goods services to begin with, hence:

          They make money from the extremely lazy. The extremely lazy also tend to be extremely cheap. Encouraging them to continue being both means they'll keep using the product

          That said, seeing that it's not eliminating gratuity or engaging in consumer fraud, it's going to be real hard to make a law forcing them to design their app in a specific manner stick. And NYC would be better off trying to pass a law that ensures delivery people are simply paid more, forces a gratuity, or makes the company make up for gratuity not received due to their

  • This is wrong (Score:4, Interesting)

    by drinkypoo ( 153816 ) <drink@hyperlogos.org> on Wednesday December 17, 2025 @09:38AM (#65863863) Homepage Journal

    I want gig workers to receive a living wage whether I am doing business with them or not, but this is the wrong way to try to accomplish that.

    The right way is to change the employment laws such that they have to be paid decently, and to raise the minimum wage if necessary, etc.

    Trying to solve the problem with tips is completely wrong. They're supposed to be an expression of appreciation above and beyond what you need to survive, not the basis of survival. Trying to trick the customer into paying that indirectly is some bootlicking bullshit which also disguises the true cost of survival.

    • Re:This is wrong (Score:5, Interesting)

      by pz ( 113803 ) on Wednesday December 17, 2025 @10:58AM (#65864173) Journal

      Trying to solve the problem with tips is completely wrong.

      No. Tipping is the problem, and the problem has gotten entirely out of hand. Make tipping illegal, and employers will be forced to pay wages that will retain their employees, and then, in turn, raise prices to compensate. At which point, we will have the system that Europe has been using for longer than I know, where being a waiter is not a stop-gap employment option while you're trying to do something else, but a respectable profession. There are establishments I frequent in various parts of the Continent where I see the same waiters working there, year after year, and there is never any problem with the service. Tipping is not expected, and if you do, it's a couple of percent. The prices on the menu are the prices you pay. No extra taxes, no extra tipping. Completely transparent.

      It is pure commercial greed that prevents the US from adopting the same rational standard, and instead we get the fraud where the price you see is nowhere near the price you pay, except in very specific, isolated cases like fuel and airline tickets.

      • I'm a huge fan of the no tipping, but I have to disagree on the "completely transparent" part. About half the places I've been tack on a "table charge". Many will put unasked-for baskets of bread on the table and then charge you for eating it. Water is sometimes free if you specifically ask for tap, but sometimes not (but then asking for tap water is a dick move anyway).

        I'm not saying any of the above is necessarily bad. It's the cultural expectation and no surprise to anyone that lives there. But just b
    • The right way is to change the employment laws such that they have to be paid decently, and to raise the minimum wage if necessary, etc.

      And raise the delivery fee to cover the higher wages you want drivers paid - if you want the driver to make $18/hr, then add in car costs, then add overhead/profit for the delivery service, and divide that by the estimated number of deliveries a driver can make in an hour - you could be looking at $10-12/delivery, with added fees if you are far from your restaurant...

      The wages paid to the driver are YOUR responsibility, their pay is a function of the fees you pay.

  • by Fly Swatter ( 30498 ) on Wednesday December 17, 2025 @10:18AM (#65863977) Homepage
    So should tipping be gone. Fix the wages. Tipping was supposed to be a compliment for good service not some beggar like entitlement.

    If it's on the receipt it is NOT a tip.
  • pre-tip (Score:5, Insightful)

    by groobly ( 6155920 ) on Wednesday December 17, 2025 @10:19AM (#65863985)

    Tipping ahead of time invites vindictive actions by the tipees, or scammy actions by tippers. The idea of a tip used to be to reward good service. Tipping ahead of time is more like extortion to avoid bad service.

    • Agreed. While I would rather not tip at all and just pay the full cost up front. I agree with you wholeheartedly. It is one of the only reasons I keep cash around. I will not pre tip. I will tip when they arrive. How much depends on the quality of service they provide. I also make a point over the phone, yes I can when I can instead of ordering online, to tell them I will be taping in cash when they arrive so they delivery driver doesn't think they are getting stiffed. Uber Eats and Door Dash can suck a sa
    • Maybe tips were a reward for good service 50-something years ago, but those days are long gone. Most people working service positions don't even make minimum wage if they're not getting tipped well. And it's more and more common that the majority of tips go into a pool and may be shared with e.g. kitchen staff.

      Besides, it's always been a bullshit concept. When your food takes a long time to come out because someone in the kitchen screws up, the waitress ends up with a lower tip. Wait staff tips have alwa
  • by nealric ( 3647765 ) on Wednesday December 17, 2025 @10:27AM (#65864025)

    If you are asking me to tip someone before I even know the level of service, then what you are asking for is not a tip. What you are asking is for me to pay this person's wages so you don't have to.

    Besides that, tipping for Doordash and uber eats drivers is also not really tipping. If I were actually in the car with the driver, then I would be experiencing service and could tip accordingly. But for Doordash, the order simply shows up on my doorstep and I have no interaction with the driver. The only thing I know is whether the order was delivered in a timely manner, but I also know that the timeliness of the order is often not in the driver's control.

    I wish we could go back to the system in most of Europe, where the workers are fairly paid and a tip is supposed to be just a little extra for excellence (and not considered mandatory). Demanding the customer supply the vast majority of the worker's wages is not fair to the customer (who is being asked to defray the "employer's" cost out of guilt) or to the worker who cannot rely on a steady stream of income and whose wages can be unfairly withheld by bad customers.

    • If you are asking me to tip someone before I even know the level of service, then what you are asking for is not a tip. What you are asking is for me to pay this person's wages so you don't have to.

      Exactly this. Tipping is supposed to reward very good service and those who go above and beyond at times. As you've described it's a payroll subsidy being pushed on consumers with cultural guilt.

      Besides that, tipping for Doordash and uber eats drivers is also not really tipping. If I were actually in the car with the driver, then I would be experiencing service and could tip accordingly.

      Uh, now that's not exactly fair, now is it? If you were actually in the car with the driver, you wouldn't be experiencing the service you actually paid for; sitting your ass on the couch while someone else plays food fetch.

      Tips on top of delivery fees, should probably be illegal. That's how we end up with deli

  • The final solution? (Score:4, Interesting)

    by SouthSeb ( 8814349 ) on Wednesday December 17, 2025 @10:32AM (#65864061)

    I wonder if the only way to solve the US tipping problem would be to all (or ate least a huge amount) of customers to stop tipping completely. Maybe laws banning tips need to be passed.

    Without tips, I guess people would have to look for other jobs and hence restaurants and delivery services would have to raise wages to compensate for it.

    • I wonder if the only way to solve the US tipping problem would be to all (or ate least a huge amount) of customers to stop tipping completely. Maybe laws banning tips need to be passed.

      Before a law like that could be passed, you'd have to evaluate the impact of all jobs that are currently paying sub-minimum wage, because "tips". Unfortunately there might still be a LOT of those. But you could still pass legislation that takes effect in a year or two. Give businesses time to raise those positions.

      Cultural Guilt turned tipping into the it's-everywhere shit it is today. Cultural Guilt can reverse that by shaming or boycotting businesses that demand or insist on tipping, while rewarding t

  • I think there are several factors at play here. Possibly the most important factor is transacting without cash, i.e. electronic payments.
    I'm not here to argue the reason to tip or not to tip.

    Because so many of us no longer, reliably carry cash; systems have defaulted to allow you to tip for services yet to be delivered. In theory, if you tip ahead of service delivered, you are sending a signal to the service provider that you expect something above the base line. Broadly speaking, this is no longer true

  • 1. In the case of food, the delivery has NOTHING to do with the order. The driver gets paid for the logistical work (driving) and DOES NOT deserve any tip based on the amount of the food order. If I made a very large order of $2K for a party, am I supposed to pay the driver $200? Are they so stupid?

    2. In the case of an Uber ride, sure driver can be tipped for a superb ride. But let's stop the bullshit and talk about this. What the is the difference between a superb ride and a normal ride? NOTHING. Every d
  • When you use DoorDash, Uber, or Instacart, what they call a tip is not really a tip. It's you saying "are any contractors willing to do this job for the amount I'm willing to pay?" If customers understood that, they would be willing to pay (/pay more) or accept that they won't be getting a delivery. But of course, Doordash/Uber/Instacart don't want that, because then instead of thinking "I'm paying Doordash/Uber/Instacart for this delivery, and the driver works for Doordash/Uber/Instacart," customers would
  • In countries like Thailand where Grab, a formerly competing ride-sharing platform, actually bought Uber's South East Asian (SEA) presence and basically took over is the true insult to injury where Uber and Lyft exist as primary rideshare platforms.

    They have a cohesive app that works great and margins (for the platform provider) are far lower, but they still remain profitable. They're just not paying for a bunch of unnecessary overhead like software developers, product managers, and redundant data scie
  • Firstly, the money will nearly never go to the staff. It will go to the business to offset their wages. Secondly, why should I be forced to pay more for my meal every time? Some experiences, good service deserves a tip and I can be quite generous then, but those kind of experiences are few and far between and most everyday experiences don't deserve a separate tip. Exceptional service? Sure. But not the baseline service.

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