TECH - Doordash And Uber Eats Stop Tipping At Checkout Add Fees For NYC Orders Amid Minimum Wage Dispute | Benzinga
Customers using DoorDash (NYSE:DASH) and Uber Eats (NYSE:UBER) in New York City received a jolt this week. The popular delivery platforms have ceased tipping at checkout and introduced additional charges.
What Happened: Business Insider reported on Dec. 6, 2023, that New York City-based users of DoorDash and Uber Eats were surprised to find they could no longer tip their delivery personnel at checkout. Additionally, their final bills included a new surcharge, making their orders more expensive.
This change is a direct response to the new minimum wage regulations in New York City, which mandate a minimum pay of $17.96 per hour for drivers. This rule, which the delivery companies unsuccessfully attempted to block, has compelled them to alter their tipping and fee structures.
As a result, customers in NYC can now only tip their delivery drivers after their order has been picked up or completed.
DoorDash and Uber Eats, in justifying the additional costs passed on to customers, stated that the new minimum wage regulations left them with no alternative.
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