DoorDash announces opposition to proposed tipping regulation in New York

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Tony Xu, CEO of DoorDash | LinkedIn

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DoorDash announced that new data reveals widespread opposition among New Yorkers to proposed Council bills that would regulate tipping practices. The company claims that proposed rules could potentially limit earning opportunities for Dashers.

According to a recent survey, 94% of New York City voters believe tipping amounts for food delivery should be determined by customers, not regulated by the government. Additionally, 85% oppose proposed legislation that would mandate specific tipping rules. Critics of the proposed rules argue that they could lead to fewer delivery orders and reduce earning opportunities for Dashers, according to a press release by DoorDash.

Recent data indicates significant opposition from New Yorkers regarding proposed legislation that would impose new requirements on tipping for delivery services. Following the introduction of minimum pay rules for delivery workers last year, DoorDash implemented additional fees to manage increased operational costs. This adjustment led to reduced order volumes and fewer delivery opportunities. In response, DoorDash moved tipping to after checkout to accommodate consumer budgets, according to a press release by DoorDash.

New York City lawmakers are considering a proposal that aims to reinstate the tipping option at checkout before order submission, while another would set a minimum gratuity suggestion at 10%. Advocates argue that delivery apps have made tipping more difficult since the implementation of a minimum wage standard for delivery workers in 2021, which led to the removal of the tipping option until after delivery, according to the New York City Council.

Founded in 2013, DoorDash is a tech company linking consumers with local businesses across more than 25 nations globally. It provides solutions to bolster business expansion and customer engagement. Primarily concentrating on local commerce infrastructure, DoorDash supports merchants in adjusting to the convenience-driven market. It also serves as a source of employment for job seekers and broadens consumers' access to community amenities, according to the Overview webpage provided by DoorDash.

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