NYC’s new food delivery tip guidelines could lead to chaos

It appears that New York lawmakers follow the motto of “If at first you don’t succeed, make the problem worse.”

In June of last year, the City Council implemented a minimum pay requirement of $17.96 per hour for app-based food delivery, causing disruptions in the delivery system.

Apps like UberEats had to adjust their pay structures to cut costs, resulting in fewer daily drivers and prioritizing more active drivers, which disadvantaged less busy workers who relied on food delivery for additional income.

UberEats and DoorDash had to pass on the increased labor costs to customers with higher fees and changes in the checkout process to include tipping after delivery.

Drivers experienced a decrease in hours and tips.

A similar scenario unfolded in Seattle.

Customers, unable to bear the increased costs, began canceling orders or reducing their frequency.

As a result, fewer orders led to less work for drivers and a decline in tips.

A minimum hourly wage is ineffective if there are no hours to work.

City Councilman Shaun Abreu (D-Manhattan) is now proposing further regulations, believing that the app changes were a retaliation against workers.

He has introduced bills to prompt users to tip before delivery and set a default minimum suggested tip of 10%.

This is likely to result in fewer customers using delivery apps and more drivers missing out on work.

Instead of acknowledging that government intervention failed to produce the desired outcome, Abreu is pushing for more regulations, which may harm the drivers he aims to assist.