Core Viewpoint - DoorDash Inc. and Uber Technologies Inc. have lost a legal challenge against a New York City law mandating a tipping option at checkout, which is set to take effect, potentially impacting their business operations and customer behavior [1][2]. Group 1: Legal Decision and Implications - A federal judge denied the companies' request to block the law, stating that the suit was unlikely to succeed as the requirements were not overly burdensome and aimed to enhance cost transparency and protect delivery workers [4]. - The law requires a suggested tip of 10% or higher, which DoorDash fears will lead to a decrease in orders from New York customers, estimating millions in losses over the next year [1][2]. Group 2: Company Responses and Future Actions - Both companies have appealed the court's decision, expressing concerns that the law will negatively affect small businesses and delivery experiences in New York City [2]. - The ruling may strengthen the city's regulatory stance on app-based work, as evidenced by a recent lawsuit against another delivery tech provider for withholding pay from workers [3]. Group 3: Context of the New Law - The new tipping requirements were introduced following a 2023 law that increased the minimum wage for delivery workers to at least $21.44 per hour, prompting DoorDash and Uber to raise service fees and alter the in-app tipping process [6].