Uber Eats and DoorDash have filed a joint federal lawsuit against New York City, aiming to block a new law that would require delivery apps to display a tipping prompt at checkout — with suggested amounts shown — rather than after the order is placed. The rule is set to take effect in late January 2026 and is part of broader local efforts to reform gig‑economy practices in the city.
Under the city’s regulation, platforms must offer customers the option to tip before completing their purchase, and suggested tips are expected to be plainly visible, with some drafts calling for suggested minimums around 10 % of the order total.
Supporters argue this change increases transparency and ensures delivery workers receive gratuities they might otherwise miss.
Compelled Speech and Business Impact at the Heart of Lawsuit
In their complaint filed in the U.S. District Court for the Southern District of New York, Uber and DoorDash contend that the tipping requirement violates their First Amendment rights by compelling them to display a government‑mandated message at a specific point in the customer journey.
The companies argue that mandating how and when tipping options appear forces them to promote a message they do not agree with, and could mislead or pressure consumers into tipping in ways that may affect demand and order volume.
The delivery platforms also claim the rule could worsen affordability for consumers already coping with high living costs in the city, making delivery services more expensive at the point of checkout.
Uber and DoorDash maintain that tipping should remain a voluntary gesture chosen by customers rather than a regulated upfront prompt, and are seeking injunctive relief and possible damages to prevent the law from taking effect.
This legal action continues a broader dispute between delivery companies and New York City authorities over how gig‑worker compensation and platform economics are regulated—following earlier battles over minimum wage standards for app‑based delivery workers.
