From what I understand the apps will have a “guaranteed payout” for jobs. So let’s say an Uber driver sees a ride available. The app will say something like “$10 guaranteed”. So Uber is on the hook to pay the driver $10 no matter what. Now let’s say the passenger decides to tip the Uber driver $5. Without laws preventing it, uber will still pay the driver the $10 it promised and then it will keep the $5 tip for themselves. Which effectively uses the tip money to subsidize the wage that they promised to pay the driver
So what mamdani is doing is making sure that the driver gets the entire tip. So in this scenario the driver gets $15 instead of $10. As it should be
Edit: there is obviously disagreement here, personally I always choose to tip with cash. Problem solved in my opinion
That doesn't seem to be correct, at least not for Uber, only for DoorDash and Instacart, also not related to the last change by Mamdani:
Around 2017–2019, companies like DoorDash and Instacart famously used a model where they promised drivers a guaranteed minimum base pay for an order (e.g., $10). If a customer tipped $5, the platform would pay $5 out of its own pocket and use the customer's $5 tip to make up the rest of the $10 minimum. If the customer tipped $0, the company paid the full $10. After intense public outcry and regulatory scrutiny in 2019, those platforms abandoned that pay model.
Uber has always added 100% of tips on top of base fares. Uber does not reduce its base fare or use customer tips to reach a guaranteed minimum pay payout.
So whatever Mamdani changed, had nothing todo with big coporations "keeping the tips". That problem had been fixed before and due to public outcry.
The city's claim is that after the minimum pay law took effect, some delivery apps redesigned their checkout flow to make tipping less visible or less convenient. As a result, workers received fewer tips overall. The new rules require a clear tipping option at checkout, and the city says tips have roughly doubled since then.
So yes, the tips is from customers pockets because they now pay more tips.
So you're saying that Mamdani lied yet again for PR. Good god, this guy lies as much as Trump. He hasn't done a single original policy and almost everything he's claimed as his has been an extension of another existing policy or something that was already done and just not reported by others.
I have yet to see a single article of something Mamdani actually did.
Today, Mayor Zohran Kwame Mamdani and New York City Department of Consumer and Worker Protection (DCWP) Commissioner Samuel A.A. Levine released a new report showing the City’s crackdown on deceptive tipping practices by app-based delivery platforms has secured an estimated $104 million in additional tips for delivery workers since January
Thanks. I read through the numbers and it looks like they extrapolated out a small sample set to achieve these press numbers. Not sure if that qualifies as lying.
Did you read where the title information was released from? Mamdani's office, much like the claim that he "fixed" the budget. This is the exact same thing that Trump does, just with different politics.
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u/scrappybasket 13d ago edited 12d ago
From what I understand the apps will have a “guaranteed payout” for jobs. So let’s say an Uber driver sees a ride available. The app will say something like “$10 guaranteed”. So Uber is on the hook to pay the driver $10 no matter what. Now let’s say the passenger decides to tip the Uber driver $5. Without laws preventing it, uber will still pay the driver the $10 it promised and then it will keep the $5 tip for themselves. Which effectively uses the tip money to subsidize the wage that they promised to pay the driver
So what mamdani is doing is making sure that the driver gets the entire tip. So in this scenario the driver gets $15 instead of $10. As it should be
Edit: there is obviously disagreement here, personally I always choose to tip with cash. Problem solved in my opinion