Uber and DoorDash Lose Bid to Quash NYC Tipping Law

Core Viewpoint - Delivery companies, including Uber and DoorDash, have lost their legal attempt to block New York City's new tipping law, which mandates that food delivery apps must offer customers the option to tip delivery workers and suggest a minimum tip of 10% [2][3]. Group 1: Legal Developments - Uber and DoorDash sought an injunction against the new law, arguing it infringed on their First Amendment rights, but the judge ruled they did not show a strong likelihood of success in their claims [2]. - The law requires delivery platforms to prompt customers for tips during checkout rather than at the time of delivery, which DoorDash claims creates undue pressure on customers [3]. Group 2: Financial Implications - City regulators have alleged that Uber and DoorDash's app modifications have cost delivery workers over $550 million by discouraging customer tipping [4]. - A DoorDash spokesperson indicated that the new legislation could lead to an immediate decline in orders for small businesses in New York [5]. Group 3: Labor Economy Context - The new law is being implemented amid ongoing concerns within the Labor Economy, which consists of approximately 60 million U.S. workers earning about $25 an hour or less [6]. - Research indicates that sentiment among Labor Economy workers remains stagnant despite overall economic improvements, with many expecting their income to remain flat while monthly expenses rise [7].