Major delivery platforms DoorDash Inc. and Uber Technologies Inc. (Uber Eats) have jointly filed a federal lawsuit against New York City challenging a new law that would require their apps to display tipping prompts before customers complete orders at checkout. The companies argue the regulations amount to government-compelled speech and undermine how their platforms communicate about tips.
The lawsuit, filed in the U.S. District Court for the Southern District of New York, comes as part of a broader and ongoing legal battle between the city and delivery aggregators over local worker pay and labor-related regulations.
Under the new rule, set to take effect January 26, 2026, delivery apps would be required to prompt users to add a tip at checkout, rather than after the order is placed, with suggested tip amounts displayed. Supporters of the law say the upfront prompt ensures delivery workers see more consistent tips and transparency in how tips are solicited.
DoorDash and Uber contend that the rule:
- Violates their First Amendment rights by forcing them to display a government-mandated tipping message in a particular way and at a particular time.
- Amounts to an “added tax” on customers in an already expensive market, especially as operating costs in New York City are significantly above national averages
- Encourages tipping as an expectation rather than as a voluntary reward for service, potentially impacting consumer behavior and platform economics.
The complaint seeks injunctive relief to block the law and damages “to the extent appropriate” to remedy the alleged violations of constitutional and other legal rights.
The tipping mandate was enacted in response to earlier changes in how delivery apps handled tipping after New York City adopted its Minimum Pay Law for gig workers, which requires delivery platforms to pay workers a guaranteed hourly rate, significantly above the previous standard. Delivery apps had shifted tipping prompts to after checkout in an effort to manage consumer perception after increasing base pay costs.
This legal dispute is part of a larger pattern of litigation involving delivery platforms and the city’s attempt to regulate worker pay, tipping practices, and platform-to-worker relationships, including previous challenges to minimum wage rules and other regulations.
