Food delivery has become commonplace, especially in large cities. This type of delivery has grown so much that cities have begun to regulate it, as workers who deliver by bicycle, motorcycle, or car need to meet certain safety requirements, both financial and physical. Therefore, states like New York may implement changes to tipping systems, requiring apps that allow customers to tip before or at the time of ordering.
At 10%, the tip is intended to help customers avoid having to calculate it manually
The main idea behind this law is that food and grocery delivery services will be required to offer customers the option to tip at least 10% of their purchase. Some groups argue that tipping was discouraged or moved to the end of the bill to “help offset the impact of these new costs” and prevent delivery drivers from “selecting only the orders with the highest tips.” New York City Local Law 107, which takes effect on January 26, adds a minimum tip requirement for customers using delivery apps.
The law aims to return control of tipping to the point of purchase, ensuring that delivery drivers continue to receive the support customers want to give them. Bill 107 will take effect at the same time as two other laws related to delivery apps that affect New York City. At 10%, the tip is intended to help customers avoid having to calculate it manually. The law will also require delivery apps to offer an option allowing customers to manually enter a different tip amount.
This comes after DoorDash and Uber Eats removed the option to tip at checkout
It’s important to note that regulating delivery services is crucial. Local Law 108 will require third-party delivery services to allow customers to add a tip before or at the time of placing an order. It’s worth remembering that workers complained that moving the tip option to the end not only reduced their earnings but also eliminated a key tool for deciding whether a trip was worth the effort before accepting it. This comes after DoorDash and Uber Eats removed the option to tip at checkout in response to the city raising the minimum wage for third-party delivery workers to $18 per hour in 2023.
One of the laws will revise a previous tipping method implemented on food delivery apps in 2023. “Tips will now only be available after the order is delivered,” Uber Eats informed its customers in an email in 2023, according to Business Insider. The return of pre-tipping could speed up order acceptance; in fact, several delivery drivers have admitted that they prioritize orders with a tip included because it makes more financial sense. Therefore, New Yorkers were required to tip after placing an order, either after pickup or delivery.
“We often have to look for parking where there are no viable options, only paid parking”
“As always, tips are optional and their purpose is to thank the delivery driver for their exceptional service,” the group stated. Meanwhile, the delivery drivers have spoken out, asserting that they should receive the same tips as restaurant servers. It’s worth noting that this decision came after city officials discovered that both types of workers (those who work for apps and those who work directly with restaurants) have similar expenses, such as vehicles and smartphones, but delivery services like Uber Eats generally don’t reimburse these costs.
In recent statements, delivery drivers said, “We often have to look for parking where there are no viable options, only paid parking, or drive through large apartment complexes to find your house. We wait in line for your order, sometimes for 15 minutes or more, so you don’t have to.” In any case, the law has generated strong criticism, as it could increase costs for consumers. When ordering food for delivery, costs can rise due to this type of change, the inclusion of tips, and potential future regulations stemming from the precarious nature of the work.