Doordash And Uber Eats Stop Tipping At Checkout, Add Fees For NYC Orders Amid Minimum Wage Dispute
Portfolio Pulse from Benzinga Neuro
DoorDash (NYSE:DASH) and Uber Eats (NYSE:UBER) have stopped allowing tipping at checkout and introduced additional fees for orders in New York City in response to new minimum wage regulations mandating a $17.96 per hour minimum pay for drivers. Customers can now only tip after the order is picked up or completed. DoorDash now pays drivers $29.93 per 'active' hour, excluding wait times for new orders. The NYC Consumer and Worker Protection Department disagrees with the companies' justification for the new fees, stating the changes are the companies' business decisions.
December 07, 2023 | 6:25 am
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NEGATIVE IMPACT
DoorDash has ceased tipping at checkout and introduced additional fees for NYC orders following new minimum wage regulations. The company now pays drivers $29.93 per active hour.
The additional fees and tipping changes may lead to customer dissatisfaction and reduced order volumes in the short term, potentially negatively impacting DoorDash's revenue in the NYC market.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Uber Eats has followed DoorDash in eliminating upfront tipping and adding new service fees for NYC orders in response to the city's minimum wage requirements.
The new service fees and post-delivery tipping policy could lead to a negative customer response, potentially decreasing the frequency of orders and impacting Uber Eats' revenue in NYC.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80