DoorDash and Uber sue NYC over delivery tip laws, citing ‘tipping fatigue,’ ‘rising prices’

Rival tech giants DoorDash and Uber are suing New York City over laws requiring their apps to offer customers the chance to tip delivery workers at checkout — not after an order is placed — and set the default option to at least 10% of an order’s cost.

The companies argue the laws, which take effect on Jan. 26 after passing last summer, violate their constitutional rights to free speech by compelling them to “speak a government-mandated message in a prescribed manner and at a prescribed time.” They’re asking the Southern District of New York to block the laws and award monetary damages for what the federal lawsuit also says is a violation of their property rights “without just compensation.”

“Plaintiffs are conscripted to amplify the City’s message despite the fact that food deliveries in New York City recently became more expensive due to the City’s guaranteed minimum-earnings requirements for delivery workers,” the suit states…

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