Door Dash updates tipping policy after NYC passes minimum wage law
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DoorDash and similar food delivery services are changing their tipping policy following the New York City government's decision to increase minimum wages for app workers.
DoorDash and UberEats will hold back their tip prompts until food is delivered, no longer offering tips as an optional incentive to entice faster delivery.
«As we have repeatedly made clear in recent months, the ill-conceived, extreme minimum pay rate for food delivery workers in New York City will have significant consequences for everyone who uses our platform.»
NYC SUED BY FOOD DELIVERY SERVICES OVER NEW MINIMUM WAGE LAW
A delivery worker rides his bike in New York City. Grubhub, DoorDash and Uber Eats sued the City of New York earlier this year in order to block its new minimum pay rules for food-delivery workers. (Leonardo Munoz/VIEWpress / Getty Images)
«Unfortunately, these regulations will significantly increase the costs of facilitating delivery in NYC and force us to make a number of operational changes, which is why we’re providing an update on what local consumers and Dashers will be seeing beginning today.»
Uber Technologies, DoorDash and New York City-based Relay Delivery all filed separate lawsuits against the city earlier this year seeking a temporary restraining order to halt the pay rate requirement set to go into effect July 12. GrubHub also joined DoorDash's complaint.
App-based delivery service workers are typically gig workers who operate as independent contractors, so minimum wage laws generally do not apply to them. But New York City is the first to change that law, and officials claim that the move will lift thousands of residents out of poverty.
DOORDASH WARNS CUSTOMERS WHO DON'T
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