Wagswoofs – Uber Eats and DoorDash, two major players in the food delivery industry, have recently updated their tipping policies. These changes come in response to a new law in New York City that sets a minimum pay rate for app-based food delivery workers. As a result, there are concerns about the potential implications of these policy changes for customers, delivery drivers, and the overall food delivery sector.
Here is a summary of the recent developments you should be aware of:
The NYC Minimum Pay Law states that workers in New York City must be paid a minimum wage.
New York City took steps to ensure fair wages for app-based food delivery workers by implementing a minimum pay law in June. This law required platforms such as Uber Eats and DoorDash to pay their delivery drivers a minimum rate for their services. In response to this legislation, both companies have made important changes to their tipping policies.
No More Tipping During Checkout
Uber Eats and DoorDash will no longer ask customers in New York City to tip delivery drivers when they check out. This is one of the most important changes. Because of this, you can now tip only after the service is complete.
This change is a direct response to the minimum wage law, as both companies have stated that their delivery workers will now earn a minimum of $29.93 per hour of active time. In order to comply with the new minimum pay rate, Uber Eats and DoorDash have decided to eliminate the option for customers to tip during checkout.
DoorDash has been outspoken about the impact of the minimum pay rule. The company has expressed that this alteration will compel them to raise delivery fees in order to accommodate the higher costs associated with complying with the law. Consequently, they have shifted the tipping option to after checkout, enabling customers to make the decision of whether or not to tip based on their personal experience.
Wait times and their impact
One of the lingering questions is how these changes will impact wait times for food delivery. Some companies have cautioned that not tipping on orders could potentially lead to longer wait times for meals. Nevertheless, the exact effect on wait times is still uncertain and may differ across various platforms.