DoorDash said it made the change due to “the impact of bad policy in New York City.”
DoorDash and Uber Eats released statements this week announcing changes to their respective tipping policies in response to New York City’s new minimum wage increase for app-based food delivery workers.
Earlier this fall, the New York State Supreme Court ruled that “apps must immediately pay delivery workers a minimum wage of at least $17.96 an hour,” according to the New York City Department of Consumer and Worker Protection.
Vilda Vera Mayuga, director of the New York City Department of Consumer and Worker Protection, praised the state Supreme Court’s ruling in a statement in late November, saying, “A minimum wage of at least $17.96 an hour will help. Probably.” Lifting thousands of New Yorkers and their families out of poverty while giving flexibility to both apps and workers…We are grateful to the court for making the right decision and fighting for the right to a dignified wage. Thank you to our hundreds of delivery workers. ”
“Delivery workers are an important part of the city’s workforce and play an important role in the local economy, but in the past However, delivery staff are not fulfilling their role as delivery staff.” ”
As a direct result of this ruling, DoorDash and Uber Eats on Monday eliminated the previously standard tipping on their apps’ checkout pages for customers in New York City and added a new service fee to each transaction. announced plans to do so. . Customers can choose to include a tip even after the delivery is complete, and both companies guaranteed delivery drivers 100% of the tip.
While some consumers unaware of the city’s changes may have been caught off guard, DoorDash said the update “makes the impact of New York City’s bad policies more relevant to everyone who uses our platform.” made a big push to explain how it is possible to balance
DoorDash said in a statement about its New York City customers: “As we have repeatedly made clear in recent months, the inadequate and extreme minimum wage for food delivery workers in New York City is a matter of concern to everyone who uses our platform. It will have a significant impact.” experience. “Unfortunately, these regulations will significantly increase the cost of facilitating deliveries in New York City and will require our company to make a number of operational changes. We are providing updates on what the situation will be for both Dashers and Dashers.”
When the revenue standards were announced in June, DoorDash released a statement saying the results would have negative consequences for the delivery driver experience.
DoorDash said at the time that in order to meet the new minimum wage, its platform and others would “need to increase the cost per order or reduce service in New York City” and other implications of the upcoming changes. said this could include reduced opportunities. To allow Dasher to work whenever he wants, customers may be underpriced on their orders and jobs may be lost at local restaurants.
DoorDash, Uber Eats, and Grubhub took a united front earlier this year to oppose City Council action to block such wage increases, but New York State Supreme Court Justice Nicholas Moyn, acting New York State Supreme Court Justice, weighed in on those arguments. I failed because I refused.
“Policies have consequences, and these changes are a direct result of the extreme income standards imposed in New York City,” a DoorDash spokesperson told “Good Morning America” Thursday. “The City itself has acknowledged that the platform may change its tipping structure to accommodate the significantly increased costs. This is exactly what we are doing and therefore should not come as a surprise. there is no.”
It added: “These changes better balance the impact on everyone who uses our platform, ensuring they provide the best possible experience as we consider further changes to our platform in the coming months. We look forward to being able to continue to deliver.”