Tip Fatigue, Higher Costs, and Fears of Fewer Orders
DoorDash and Uber describe the fallout as “concrete and compounding,” citing rising costs of living, elevated minimum-pay requirements, and growing consumer “tip fatigue.”
According to their filing, the laws require a predelivery 10% tip suggestion, a move the companies fear will cause customers to abandon orders at checkout.
“Fewer orders would cause reduced business opportunities and revenue,” they wrote, adding that fewer orders would also cut earnings for delivery workers and hurt merchant partnerships, damaging their goodwill.
What the NYC Laws Require
Local Law 107 (2025)
Requires apps to:
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Offer gratuity options chosen at their discretion
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Include an option to tip at least 10%
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Give customers the option to manually enter any amount
Local Law 108 (2025)
Requires platforms to:
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Present tipping opportunities in plain language
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Display them before or during order placement
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Clarify customers are not required to tip
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Allow post-order tip adjustments
Both laws take effect Jan. 26, 2026.
