Uber and DoorDash sue to stop rule on where tip screen will appear

There’s even more drama about deciding what to get for dinner. Uber and DoorDash jointly filed a lawsuit last week to stop a new New York City law that would require the apps to display a tipping option before a user finalizes their order and set the default (though still optional) tip at 10%.

The lawsuit alleges that the legislation, which is scheduled to take effect on January 26, violates the First Amendment by requiring the food delivery apps to “speak a government-mandated message.” The companies also claim that the change would deter customers who already experience tipping fatigue.

Like the soggy tater tots you rushed down to pick up in your pajamas, the litigation is loaded: Until December 2023, the food delivery apps included a tip option at checkout. But in response to their unsuccessful attempt to stop an earlier NYC law (the one that instituted a $21.44 hourly wage for delivery workers), they pushed the tip prompt to later in the process—in some cases, even after delivery. The reordering was an attempt to lessen the sticker shock from fees that the apps increased to offset the higher labor costs…

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