Uber and DoorDash just launched a joint federal lawsuit aimed at stopping new New York City legislation that would require them to suggest a minimum 10 percent tip at checkout, as per the New York Times. This is truly a last-ditch effort by two of the biggest food-delivery apps to overturn regulations set to take effect in January, right before a new, highly critical mayor takes office.
The companies filed the suit in the Southern District of New York, arguing that the City Council legislation is wildly out of bounds. Their core legal claim is that forcing them to suggest a tip percentage violates their First Amendment rights by requiring them to “speak a government-mandated message.” Honestly, that’s a pretty intense argument over a suggested 10 percent tip, especially since customers can still choose to pay more, less, or nothing at all.
What’s even more dramatic is the companies’ economic prediction. While tipping remains optional under the new rules, the lawsuit claims that a “mandated pre-delivery 10 percent tip suggestion” would actually cause customers to use the app less because they are suffering from something called “tipping fatigue.” The suit concludes that this “lessened engagement would result in fewer orders.”
The reason the city is stepping in is simple: tips have plummeted
If you’ve been in New York City lately, you know that the food delivery industry is huge. New Yorkers spent more than $265 million on restaurant deliveries in the first half of 2025, which is a massive jump from the $183 million spent during the same period in 2022. There are about 80,000 delivery workers in the city, and NYC has enacted the strictest regulations in the country on this multibillion-dollar industry…