DoorDash, Uber sue New York over tip ask at checkout law

DoorDash (DASH) and Uber (UBER) filed a lawsuit seeking to overturn a New York City law that requires delivery platforms to ask consumers to tip at checkout, instead of after the delivery. “In the midst of an affordability crisis, the New York City Council has turned tipping into essentially an added tax by forcing platforms like DoorDash to pressure consumers to tip at checkout. While tipping remains voluntary, the fact is City law requires DoorDash to ask consumers to tip prior to completing checkout and dictates the amounts of suggested tip displayed…Dashers in New York are guaranteed to earn $21.44 per hour while on delivery, more than many first responders in the city. In fact, they earn much more than that – almost $30 per hour while on delivery, before tips. New Yorkers shouldn’t be pressed by their City Council to add a tip on top of some of the most expensive delivery costs in the country,” DoorDash said in a statement on its website.