Tipping is now more of an afterthought for DoorDash deliveries in New York City following a minimum wage increase ordinance in the city.
The company announced on Monday that it is moving its tipping option post-checkout to "better balance the impact of bad policies."
Customers are usually handed the tipping option on the checkout screen with the middle option selected as default. This remains the same in other cities, not just in New York.
The move is in recommendation from the NYC Department of Consumer and Worker Protection after DoorDash was "forced" to raise its delivery fees. That way, services remain affordable for regular New Yorkers.
DoorDash has been vocal against the "ill-conceived" regulations in the city, warning of "significant consequences" for the platform's users and drivers soon.
The delivery service had a hearing last April and in June for a reconsideration of the new policy.
New York City Minimum Wage Increase
Earlier this year, New York City passed the first-of-its-kind law to increase minimum pay for app-based food delivery drivers in the city to at least $17.96 per hour plus tips starting July 12.
Another wage hike to $19.96 an hour is set to arrive by April 2025.
New York City Mayor Eric Adams said the laws will "guarantee these workers, and their families, can earn a living."
Food delivery companies operating in the city, however, were not happy with the new wage policy.
DoorDash, Grubhub, and Uber filed a lawsuit against the city for its supposed "harmful impacts" on customers, sellers, and delivery workers in the city. The companies claimed the law would force them to shrink services.
In September, a federal court upheld the city's rulings to the companies' disappointment.
Also Read: DoorDash Drivers Might Pass on Orders with No Tips, Company Warns
DoorDash Policy on Delivery Drivers
This was not the first time DoorDash changed its policies in reaction to a new regulation passed in favor of its workers.
Before the New York City law was passed, DoorDash revamped its policies for delivery drivers. It allows workers to earn a "consistent" guaranteed hourly rate in addition to tips received.
The hourly rate, however, is much lower than the minimum wage increase offered by the DCWP.
DoorDash maintains that 100% of the tips will still go to drivers even after the new policy.
Related Article: DoorDash To Offer Delivery Workers Minimum Wage With a Twist
