NYC banned Motoclick, now Mamdani targets Uber Eats, DoorDash over "hidden" tip buttons
New York City officials report that new regulations requiring delivery apps to display clear tipping options have significantly increased worker earnings. The policy, enforced against Uber Eats and DoorDash, has resulted in an estimated $104 million in additional tips for delivery workers since January.
Why it matters
This highlights a successful regulatory intervention in the gig economy, demonstrating that government oversight can effectively protect worker compensation without negatively impacting order volume.
New York City Mayor Zohran Mamdani opened his term by trying to shut a delivery app down. Six months later, he has the two biggest names in the business in his sights. On Wednesday, Mamdani said the city's crackdown on hidden tip buttons at Uber Eats and DoorDash has pushed an extra $104 million into delivery workers' pockets since January, and signalled the enforcement drive is far from over."Uber Eats and DoorDash hid tip buttons and set default tips below 10%. As a result, tips for delivery workers fell 79%," the mayor posted on X, saying the city forced the platforms to redesign their apps in January. He called the result the start of a longer push on how the apps treat the people working on them.The figures come from a Department of Consumer and Worker Protection report released alongside him.
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