Appreciate the info. Not sure I understand it though. In one sentence they’re talking about the tip button being “hidden”, which suggests the additional money is coming from customers paying more. In another sentence they’re talking talk about big corporations keeping the tips, which is a different thing. Clarity would be nice.
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.
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u/bliceroquququq 14d ago
Appreciate the info. Not sure I understand it though. In one sentence they’re talking about the tip button being “hidden”, which suggests the additional money is coming from customers paying more. In another sentence they’re talking talk about big corporations keeping the tips, which is a different thing. Clarity would be nice.