Food delivery app companies DoorDash and Uber Eats have significantly changed their services in New York. Business Insider reported both apps no longer allow customers to tip at checkout. Instead, a new “courier fee” will be tacked onto the final bill.
The outlet reported delivery app companies are not thrilled about New York City’s new minimum wage rules, which demand at least $18 an hour for delivery workers. Companies like DoorDash and Uber Eats have tried to squash the rule, which also states that delivery drivers should be paid a minimum of $17.96 an hour, to no success. Before the change, delivery drivers made about $7 per hour on average, without tips, per Business Insider.
New Yorkers ordering food on DoorDash or Uber Eats can only tip their delivery driver after their order has been picked up or completed. These food delivery companies say they have no choice but to require extra customer costs to compensate for the change.
“These new regulations will force us to raise fees for orders in New York City,” DoorDash said. “In order to better balance the impact of these new costs, we’re moving the option to tip in the DoorDash app to after checkout.”
DoorDash and Uber Eats claim that drivers now earn $29.93 per “active” hour, meaning the time they spend picking up and delivering food. Drivers don’t receive pay for the time they spend waiting for new orders to come in. DoorDash explained it landed on $29.93 per active hour after doing the math and factoring in the new minimum.
Uber Eats is following in DoorDash’s footsteps and also booting upfront tipping.
“Additionally, tipping will now only be available after your order has been delivered,” Uber Eats said in an email to customers. “As always tipping is optional and intended to thank your courier for exceptional service.”
A spokesperson for Uber Eats said that the additional fees shouldn’t discourage customers from paying couriers.
“No one should be surprised — the city’s own study made clear that companies would likely eliminate jobs, discourage tipping, and force couriers to go faster while doing more deliveries,” they told Business Insider.
New York City’s Consumer and Worker Protection Department challenged that argument in a statement.
“This is entirely Uber and DoorDash’s own business decision,” a spokesperson for the department told Business Insider. “DCWP supports customer’s having the option to tip whatever amount they would like, and we do not endorse this nor have we suggested the apps change their tipping policy.”
Research done by Business Insider concluded that, for an order worth about $30, the courier fee will come to $2.
