Food delivery couriers working for major apps in New York City are now receiving an average tip of just 76 cents per order, a dramatic fall of roughly three dollars compared to rates from just a few years ago. This startling decline is detailed in a new report from the city's Department of Consumer and Worker Protection (DCWP).
The Staggering Drop in Tipping Revenue
According to the official data, the landscape for delivery worker gratuities has shifted radically. In November 2023, the average tip per delivery for Uber Eats and DoorDash workers stood at $3.66. The subsequent plunge to a mere 76 cents represents a collective loss of more than $550 million in tip income for couriers since the start of 2023.
This financial hit for workers occurred after the restaurant delivery platforms changed the customer interface for tipping. The DCWP asserts that the apps made it "harder to leave tips for delivery workers" by moving the prompt to a post-checkout stage, which was often easy for customers to miss or navigate away from.
Minimum Wage Increase Offsets Some Losses
There is a significant counterbalance to this tip decline. The report highlights that couriers' total pay actually rose by $1.2 billion after New York City began enforcing a mandatory minimum pay rate for app-based delivery workers in December 2023.
Before this rule took effect, a November 2022 study found couriers were taking home approximately $11.12 per hour including tips. The enforced minimum rate was increased to $21.44 per hour last spring, substantially boosting base earnings.
New Rules to Make Tipping Easier at Checkout
Despite the higher hourly wages, city officials are pushing to restore easier tipping access for consumers. New amendments to the city's delivery worker laws, set to take effect on 26 January, will require apps to provide a tipping option during the checkout process.
Customers will be presented with the choice of a 10 percent tip or a custom amount before finalising their order. The DCWP estimates that if the apps apply standard tipping options used elsewhere, it could increase delivery worker earnings by $390 million annually.
DoorDash has contested the city's characterisation. John Horton, the company's head of North America public policy, stated that "Dashers in New York City earn an average of almost $30 per hour while on delivery before tips." He argued that moving tipping to after checkout is common practice and accused the DCWP of trying to pressure consumers, calling forced tipping akin to a tax.
Both DoorDash and Uber have filed lawsuits against the city challenging the new tipping requirements. The legal battle sets the stage for a continued conflict over gig worker pay and consumer choice in one of the world's largest delivery markets.
