Uber and DoorDash just launched a joint federal lawsuit aimed at stopping new New York City legislation that would require them to suggest a minimum 10 percent tip at checkout, as per the New York Times. This is truly a last-ditch effort by two of the biggest food-delivery apps to overturn regulations set to take effect in January, right before a new, highly critical mayor takes office.
The companies filed the suit in the Southern District of New York, arguing that the City Council legislation is wildly out of bounds. Their core legal claim is that forcing them to suggest a tip percentage violates their First Amendment rights by requiring them to “speak a government-mandated message.” Honestly, that’s a pretty intense argument over a suggested 10 percent tip, especially since customers can still choose to pay more, less, or nothing at all.
What’s even more dramatic is the companies’ economic prediction. While tipping remains optional under the new rules, the lawsuit claims that a “mandated pre-delivery 10 percent tip suggestion” would actually cause customers to use the app less because they are suffering from something called “tipping fatigue.” The suit concludes that this “lessened engagement would result in fewer orders.”
The reason the city is stepping in is simple: tips have plummeted
If you’ve been in New York City lately, you know that the food delivery industry is huge. New Yorkers spent more than $265 million on restaurant deliveries in the first half of 2025, which is a massive jump from the $183 million spent during the same period in 2022. There are about 80,000 delivery workers in the city, and NYC has enacted the strictest regulations in the country on this multibillion-dollar industry.
Back in 2023, New York City established the country’s first minimum pay rate for delivery workers. After that minimum wage standard went into effect, some food-delivery apps switched to showing the tipping option only after a purchase was completed. Before the minimum wage, about half of a delivery worker’s earnings came from tips. Now, even though their earnings per hour have nearly doubled to about $24 an hour during delivery periods, tips only make up about 10 percent of their total pay.
The City Council member who introduced the tipping legislation, Shaun Abreu, quickly pushed back on the companies’ claims. He said the goal is just to provide transparency for both customers and workers. He pointed out that apps have included a tip option at checkout for years, so this isn’t some brand-new burden. “At the end of the day, there is nothing forced on anyone,” Mr. Abreu said, emphasizing that there are “no additional costs to the apps.”
The timing of this lawsuit is important because Mayor-elect Zohran Mamdani takes office on January 1, just weeks before these rules go into effect. Mr. Mamdani has been highly critical of the industry, publicly stating that the companies have “exploited” delivery workers. During his campaign, he fully supported giving customers the option to tip at checkout. Notably, he also came to support Starbucks employees recently, who were in the picket line for worker rights.
It sounds like the city is ready for a fight, and you can expect this legal battle to heat up quickly after the new year.
Published: Dec 17, 2025 06:00 pm