Uber Eats, DoorDash Interface Changes Reduced Tips by $554 Million, DCWP Says

MT Newswires Live01-15

Uber's (UBER) Uber Eats and DoorDash's (DASH) interface design changes have made it harder for customers to tip delivery riders on their platforms, leading to a $554 million decline in tip earnings, according to a report Tuesday by New York City's Department of Consumer and Worker Protection, or DCWP.

The average tip at Uber Eats and DoorDash fell from $3.66 per order before the interface changes in late November 2023 to $0.93 a week after the changes and further to $0.76 currently, compared with the average $2.17 tip per delivery on restaurant delivery apps with a tipping option at checkout, the report said.

The design changes were implemented after DCWP enforced the minimum pay rate rules for delivery workers in December 2023 and applied only to New York City consumers, according to the report.

The agency said it will strictly enforce, starting Jan. 26, new requirements for delivery apps, including Uber Eats and DoorDash, to restore users' options to leave tips during checkout, including a 10% tip option and a custom tip amount.

The new requirements will also apply to grocery delivery apps like Instacart (CART), DCWP said.

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