Earlier today, the New York Department of Consumer and Worker Protection issued a report claiming DoorDash is tricking consumers to reduce tips.
The report gets a lot wrong. Here are the facts.
Myth #1: DoorDash is “Hiding” the Option to Tip
Fact: Consumers can tip after delivery - just as DCWP suggested.
Moving tipping to after checkout isn’t novel or nefarious - it’s how tipping works in most areas of life. In fact, the DCWP suggested this exact approach in their 2022 study. Don’t take it from us. Here’s the DCWP on tipping in their own words:
“Apps could choose to reduce consumers’ costs through changes to the user interface that discourage or eliminate tipping (or, equivalently, consumers could choose to tip less in light of workers’ higher pay, independent of any changes engineered by apps).”
Consumers are free to make their own choices about how much to tip, especially given they know workers earn a guaranteed $21.44 per hour and have seen earnings rise by over $1 billion dollars.
Myth #2: Lower Tips = Lower Earnings
Fact: Workers earned $1.2 billion more under the new rule.
It is true that consumers in New York have decided to tip less than they used to. It is also true, per the DCWP’s own report, that delivery workers earned $1.2 billion more than they otherwise would have under the city’s new minimum pay law. In fact, Dashers earn almost $30 per hour while on delivery, BEFORE tips - more than many first responders in the city.
The DCWP reports cherrypicks data...
Earlier today, the New York Department of Consumer and Worker Protection issued a report claiming DoorDash is tricking consumers to reduce tips. The report gets a lot wrong. Here are the facts. My...