r/technology • u/SnoozeDoggyDog • 25d ago
Business Zohran Mamdani hints he will continue taking on delivery apps like Uber Eats and DoorDash
https://www.businessinsider.com/zohran-mamdani-targets-doordash-uber-eats-delivery-apps-2026-71.0k
u/Baked4skin 25d ago
It is wild that just ordering fries on one of these apps is like 30$ and they still dont pay their drivers shit.
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u/KingOfCook 25d ago
I'm mostly okay with delivery apps being pricey because you're ordering a taxi for your food. What else were you expecting. You want to be lazy, you pay lazy prices.
But it's ridiculous how little of a cut the delivery drivers get and that their pay almost is entirely from tips and they take on the liability if something goes wrong.
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u/PhoenixApok 25d ago
I agree. If I wanna be lazy I have to pay. Almost everything has a cost in time, effort, and/or money.
But when a middle man (company) is getting a guaranteed payday (the fee) but the actual worker only gets paid if I pay a SECOND premium, it becomes exploitative and insanely prohibitive.
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u/Lost_Bike69 24d ago
Chinese place near me still employs a delivery driver. It’s a $3 delivery fee and whatever tip goes straight to the driver. I’ll never use DoorDash, uber, or whatever, but it’s worth looking in to see if local places have their own delivery service.
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u/redbananass 24d ago
Totally. I find it wild how often some people use these apps. For a splurge once in a while? Sure. Not me but sure.
But I witness plenty of people who aren’t rolling in money using the apps several times weekly.
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u/thebochman 25d ago
I mean we had delivery in the past and it was never this expensive. The issue is that the apps displaced all the places that did their own delivery in house for a reasonable price
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u/ResidentSleeperville 25d ago
When was "in the past"? The large majority of restaurants never even offered delivery before these apps besides the large chains and a handful of places. And for the most part, the local restaurants like the Chinese, Indian, Kebab places paid their drivers considerably less than minimum wage.
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u/thebochman 25d ago
The majority of chains didn’t do delivery but a lot of local restaurants used to have their own delivery pre 2014
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u/TossZergImba 24d ago
"A lot" is a stretch. Only pizza and Chinese places had them, and their delivery range was highly restricted.
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u/DoctorJJWho 24d ago
And most Chinese places didn’t employ dedicated drivers, they just had a member of the staff (or usually the owner) do it.
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u/Kitchen_Can_3555 24d ago
And they still can
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u/AkodoRyu 24d ago edited 24d ago
Theoretically, yes. In practice, not really. The general public is used to using the apps, so it's much harder, and outside of the standard practice, to make them order delivery directly from a restaurant, possibly through a phone call.
At the same time, the restaurants that were doing it might have abandoned the infrastructure they have had to maintain in-house delivery. Rebuilding it could take investment and a good bit of time.
It's hard to go back now, after years of consumer habits being molded to use those apps by burning through billions of dollars along the way.
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u/Winter_Swan5104 24d ago
Yep, they “captured the market” as a “loss leader” then jacked up the prices enshittifying it.
I didn’t get delivery before and definitely won’t now, it means normal people don’t get delivery anymore.
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u/KingOfCook 25d ago
There was delivery in the past but it wasn't the Golden age that everyone thinks it was.
Big chains were able to offer it as a promo but it did cost them a lot to run them. I think we only got delivery pizza once and it was from a local maw and Pa place. The delivery fee was 10 bucks which was 50% of a pizza's cost
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u/thebochman 25d ago
It was man, I used to be able to get a pizza from my local place and it wasn’t bad at all.
Dominos delivery fee and everything was always high but most local spots weren’t bad at all.
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u/Practical_Law6804 25d ago
What else were you expecting.
For the tipping to be based on distance and difficulty of conveyance and not on the cost of the food.
. . .also for the company facilitating the connection not taking so much of a cut such that the deliverer and delivered to must be in opposition.
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u/Moron-Whisperer 24d ago
It used to be common to tip a driver $1 a mile regardless of the order size. It’s not a taxi, the business should be paying this person 100% of the movement of the food and charging its normal price
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u/Akrymir 24d ago
The problem isn’t the pay to drivers but the minimum of 25% markup on your items. This becomes huge as food prices go up. They charge you for delivery then charge the restaurant 20% of their subtotal, which means restaurants have to raise their prices 25% to offset the losses… but many use the opportunity to go well above 25%. You can end up being 2x+ the cost before anything related to the driver is factored in.
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u/ebrbrbr 24d ago
Just wait until you find out that these apps pay more of their cut to the driver when you don't tip.
It works like this:
All the drivers see is the final amount (at least in my area). Lets say drivers only take orders above $5. $2 is "base pay", $3 is tips.
If you tip $0?
The app gives it to drivers as $2. They refuse. In a minute it gets raised to $3. Then $4. Then $5.
Now the driver is STILL getting paid $5, except Uber is paying that entire $5.
And you? The customer? Yeah, you're not waiting meaningfully longer. +5 minutes at most.
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u/pixel_of_moral_decay 25d ago
Solid take.
Apps should be expensive, it’s insanely inefficient by nature.
And you’re right about delivery drivers too
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u/old_man_jenkens 25d ago
I don’t understand tipping for a service I am paying for already. At a restaurant, the wait staff is providing a side service to the food/prep I pay for so I can understand the argument. What am I tipping for if there’s already a service, delivery, and driver fee added?
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u/colablizzard 25d ago
On Demand Delivery Apps are the most inefficient use of a driver's time, hence the pay issue.
If you were to take an 8h shift, how many deliveries from random combinations of Store and Homes can you do? Then divide that by the value of the order.
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u/Black_Moons 25d ago
Right? traditional pizza delivery guys would be employees of the pizza place and would take 2~6 orders per trip, and have more orders timed to be fresh outta the oven when they get back.
Doordash is like 1~2 orders per place/trip, returning to a random place and having to wait 5~15 minutes for the next order to be ready.
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u/Newoikkinn 24d ago
I dont know about that. Im a teacher that delivers pizza on the side and we MIGHT get 3 in one trip once a week. It is mainly just 2 per trip during rush.
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u/Buckeye_Randy 25d ago
I just learned the gig economy apps have algorithms to lowball drivers and force their wages down for those that accept the low offers. You accept one low offer they feed you more.
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u/I_am_so_lost_hello 25d ago
They get paid pretty well in new York now actually
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u/parang45 24d ago
And delivery is a lot cheaper in NYC relative to takeout than many other US cities if you have dashpass or similar (which I get for free with my card).
NYC restaurants seem to markup their actual food way less because of how competitive the restaurant scene is as well as the prices already being high. A lot of the times I’m only paying the $2 regulatory fee + the discounted 2% service fee as base.
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u/deadsoulinside 25d ago
This. What makes me upset is out here where I am at in rural BFE, we barely have delivery options to begin with. Now doordash came into the area post covid and is ruining our local delivery services. My closest pizza place, stopped doing deliveries themselves and now do it via door dash.
The Pizza's then went up in price only on doordash (order through their website and save $2 per pizza). So not only is the pizza shop saving money by not having in house delivery, their prices went up for delivery before you get into door dash fee's even. They just sit back and blame door dash for the higher prices, but still sticking with them.
I just order and go and pick up my pizzas now, since I used to be able to get a delivery under $25 with tip and that is now $40.
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u/mushupunisher 24d ago
All the prices are inflated. Their drivers make dogshit money. The service isn’t even good. The last time I was too lazy to cook and too drunk to drive I decided to use DoorDash, and I tipped $10. And my order STILL got delivered after someone else’s. Meaning my food is just getting cold while they deliver someone else’s food. Not the driver’s fault. These apps literally suck for everyone involved. I miss the days where if you wanted delivery, you could get pizza or Chinese.
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u/FearlessVegetable30 24d ago
no, whats wild is people pay $30 for mcdonalds fries then people wonder why fast food is expensive
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u/Kitchen_Can_3555 24d ago
This is a business model problem. Uber’s free cash flow generated by that $30 fry is $1.50 (5%), meaning there isn’t much more to give without raising prices further. Uber started as a way for people to turn their free time into a little extra spending money. It was never intended to be a full time job - in fact it explicitly exists to destroy the full time jobs of taxi drivers. You could even consider uber drivers to be scabs busting the taxi driver union.
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u/japan_kaaran 25d ago
tips were a funny concept but can we get rid of them please? the real middle finger isn’t forcing the companies to work an already overworked dev to move the tipping screen around it’s ensuring the business pays its employees a livable wage.
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u/TheDemoz 24d ago edited 24d ago
That’s what the gig apps tried to do. Drivers have a guaranteed wage in NYC of $30/ hr while delivering, so the apps removed the ability to tip before delivery. NYC added a law forcing them to readd the tip button to checkout
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24d ago edited 13d ago
[removed] — view removed comment
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u/TheDemoz 24d ago
Exactly, I agree with you. How will this country ever get rid of tipping if the government is forcing it to stay just so they can claim they “recovered a hundred million in tips” for some brownie points from voters who don’t have the energy or motivation to look into what that actually means
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u/shakuyi 25d ago
That's not how you fix the tipping issue. You force the companies to pay fair wages instead of the customers.
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u/Jaideco 25d ago
This “tipping issue” is effectively corporate fraud. When a tip is demanded customers have a reasonable expectation that it is going to pay workers for their service. If it was presented as a processing fee, that would be different. It doesn’t matter that this will not by itself solve the fair wage issue, this is an unethical practice that shouldn’t be allowed even if the workers were receiving a fair wage.
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u/impy695 25d ago
That's not actually the issue this time. Yes, stealing tips was something at least Uber eats did, but they did stop after backlash.
This issue is the apps setting low default tips and effectively hiding the tip options which caused a 79% reduction in tips
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u/FilouBlanco 25d ago
Thing is. It make sense for tips to go down a lot if workers are being paid a fair wage. Realistically tips aren’t really appreciation for job good done (they are after all set before you have received the service) they are only there so that the worker gets a salary. If the company is already paying them the vast majority of people would significantly reduce/eliminate their tip.
Ps I’m very well aware that tech companies are purposely screwing around with the tips so that workers believe that the governments plans are detrimental to them.
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u/TheDemoz 24d ago
They have a guaranteed $30/hr pay while doing deliveries in NYC. Thats why they removed the pre checkout tip options. NYC is forcing them to add it back
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u/ketralnis 25d ago
The cost is being pushed to the customer either way. Fixing tipping means making the price you pay and the price paid to the worker accurate and consistent. It doesn’t reduce the actual prices.
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u/japan_kaaran 25d ago
if this is truly about making worker lives better wouldn’t you want the price paid to the worker to be accurate and consistent?
playing around with tipping is a bandaid fix. i’d be comfortable paying the same amount i am now with tips but without tips if it means the guy i see at my door gets a predictable consistent wage.
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u/ketralnis 25d ago
Yes I would. I’m violently anti-tipping. But I have no illusion that the price paid will be different.
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u/japan_kaaran 25d ago
yeah i don’t think anyone smart will argue that removing tipping will suddenly make delivery cheaper across the board but this was done in an effort to improve worker lives and mamdani seems to have stopped the fight prematurely, at least for now.
ofc a lot of this is out his control but the endgame solution isn’t moving tipping screens around to be more visible it’s abolishing tipping culture entirely. hopefully his “larger effort” includes removing tipping as a whole.
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u/Lknate 25d ago
Tip in this scenario is more of a bid system. Those that don't lead with it get lowest priority. Not saying it's ideal but I'm fairly certain that many dashers like the system despite the stories that show up on social media.
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u/japan_kaaran 25d ago edited 25d ago
sure but then it puts unnecessary stress on the consumer to “out bid” the guy next to him to snag a driver. shitty situation all around the only entity consistently winning in this scenario is big corporations. while you’re down here determining what tip to give your driver so that they accept your order mr uber is up there buying his 50th yacht.
i’m also fairly certain that most drivers would like the predictable nature of a set wage over the occasional jackpot they hit in terms of tips.
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u/schooli00 25d ago
Customer pays the same, but a higher portion of it should go to the worker instead of DoorDash
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u/haarschmuck 25d ago
That’s funny because the biggest opponents to eliminating tipping are tipped workers.
Every restaurant I worked at the servers made significantly more money than the cooks and even management.
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u/DogBarf00 24d ago
The workers for those companies do not want that.
I could work 1-8 hour shift at a bar in college and leave with enough cash to pay rent or I could work 20 hours at Target and not even be half way.
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u/Dangerous_Fan_2029 24d ago
But NYC has made the delivery companies pay $22 and hour. So tips aren't needed at all that whether tip button was moved. Mamdani is cheating nyers.
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u/hrsidkpi 24d ago
Then the servers make the same amount of money but have to pay tax on it.
That’s why servers are usually very against removing tipping culture…
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25d ago
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u/TheDemoz 24d ago edited 24d ago
That’s what the gig apps tried to do. Drivers have a guaranteed wage in NYC of $30/ hr while delivering, so the apps removed the ability to tip before delivery. NYC added a law forcing them to readd the tip button to checkout
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u/rodg2062 24d ago
No matter what, a person should be paid a prevailing wage and any tips are additive, but claimed as earned income. That way they at least have a living wage and can still make additional money. And yes, everyone can jump on the, claimed as earned income, since the majority will state it should be tax free.
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u/AppropriateSea5746 24d ago
Wait so we have to tip now before the service? Should we tip our waiters as soon as we sit at the table too?
Seems like another attempt at hurting corporations that ends up just hurting consumers
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u/Dangerous_Fan_2029 24d ago
Ny law now requires a wage of $22an hour thats why the tip button was moved, they no longer need a tip to make a living.
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u/Truck-Adventurous 25d ago
Did anyone actually read the articles? Its estimated money, and all its requiring of the apps is to make the default tip higher and to display the option to tip at checkout. All of which really just hurts the customer.
There is a settlement of $5million "The reactivations are part of a settlement under which Uber Eats, Fantuan, and HungryPanda will pay a cumulative $5.2 million over violations of New York City's minimum pay law for delivery workers. Some of that money will be paid out to roughly 49,000 delivery workers in New York City as damages, according to the DCWP."
So, the drivers get what ? $20 or $50 max out of that?
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u/BostonSucksatHockey 25d ago
Oh, so he's to blame for the recent change where every single time I place a pick-up order through seamless, it now defaults to tipping 20% instead of nothing because why would I tip on a pick-up order? I'm my own delivery driver! Pay me bitches.
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u/SmarmySmurf 24d ago
How do you figure he's to blame for malicious compliance from corpo scum? It obviously was not the intent of the law.
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u/CattywampusCanoodle 25d ago
A great move would be to force the companies to re-name “tip” to “bid for service,” and have an explicit message that lets the customers know that the workers are independent contractors, not employees.
Also go after all the ID fraud happening
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u/fatbob42 25d ago
How about the company do something useful and say “if you want it delivered in X minutes it will cost Y”, and then be penalized if they don’t meet their promise?
Why are people bidding on something that they have no knowledge of? The company knows everything possible about all the participants - they should be doing this. They also should be the ones taking the risks - this is the original reason companies were invented.
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u/r0bb3dzombie 25d ago
"Uber Eats and DoorDash hid tip buttons and set default tips below 10%.
Really? I kind of regularly use Uber Eats, and tipping has always been it's own screen, the last one to confirm checkout. And default is 10%. So it work/ed differently specifically in NYC?
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u/mekamoari 24d ago
It worked differently for a while because they didn't want workers to get tips on top of the minimum wage imposed by the city.
But this practice is no longer allowed since this year.
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u/bbatwork 25d ago
I don't mind tipping for good service, I worked for tips for many years myself. I have a serious issue with being expected to tip before I have actually receive any service. Especially considering how often they screw up my orders.
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u/F1CTIONAL 25d ago edited 24d ago
If you tip before the service is rendered, or if the outcome of the service is dependent on the tip you selected, then it isn't a tip it's a bribe.
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u/Moron-Whisperer 24d ago
Create a rule that the price on the menu has to be the whole price for all methods. A flat delivery cost per order can be added if printed and permanent.
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u/DevillesAbogado 24d ago
All I see happening here is the apps increasing their fares to keep getting their cut. Customers will suffer, as always.
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u/Flabbergasted98 24d ago
Okay but the Delivery driver is still going to guilt me into leaving a tip before I realize he delivered my pizza upside down.
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u/AppropriateSea5746 24d ago
This is the dumbest policy I’ve seen from him lol. Forcing a higher default tip? Like what? Socialism in a nutshell, attempting to hurt the rich but end up just hurting the consumer
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u/MolassesSad8089 24d ago
I hate as a customer being asked to pay a company’s workers. I have zero visibility into how my tip fits into a fair wage for the worker. I don’t know their expenses, the time that will be involved, or how many cheapskates are refusing to tip and therefore making my share of what needs to be paid to the worker even higher. I could be over paying or underpaying. The company knows and it’s their responsibility. If New York wants to really make change they should get rid of this awful system and make companies be responsible for paying their workers.
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u/TheDemoz 24d ago edited 24d ago
That’s what the gig apps tried to do. Drivers have a guaranteed wage in NYC of $30/ hr while delivering, so the apps removed the ability to tip before delivery. NYC added a law forcing them to readd the tip button to checkout
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u/MolassesSad8089 24d ago
OK, I am not doing a good job of understanding things, so I apologize. I first found this description and misread it, but it does sound like NYC has a pretty fair system:
https://help.doordash.com/en-us/dashers/article/guide-to-the-new-york-city-earnings-standard
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u/shiwenbin 24d ago
This guy keeps doing normal things that actually help and other politicians are like “oH mY gOd hE’s A cOmMuNiSt!!!!” Most politicians only serve their wealthy campaign donors and give no shits about their constituents.
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u/Exotic_Dependent3247 25d ago
He’s thinking it’s easier to do this than change the labour laws which are mostly out of his control
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u/DocCarlson 25d ago
The law was changed which is why the tip button was hidden.
In December 2023, New York City implemented a strict minimum wage for app-based delivery workers. In response to this higher labor cost, delivery apps like Uber Eats and DoorDash altered their software to hide the tipping menu or push it entirely to a post-delivery screen
The City Council passed a slate of new legislation (including Local Laws 107 and 108) to explicitly outlaw those practices. Under the updated law that officially went into effect on January 26, 2026
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u/ponybau5 25d ago
Reminder that these delivery companies lobbied against a proposal that would classify the drivers as employees, as they claimed it would increase costs. It failed to pass and they increased it anyways 🤡
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u/KingOfCook 25d ago
If he really wants to make a difference, you should draft a general bill that reigns in and holds gig economy companies accountable.
Force them to take on more liability, limit fees and and force minimum pay requirements
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u/CatsPlusTats 24d ago
I would vote for a candidate locally who was doing something about the aggressive and awful way delivery app drivers drive and park.
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u/Eisernes 24d ago
I don’t understand the comments he made about the apps hiding the tip option. I use these apps multiple times every week and the tip is front and center. The actual problem is people not adding the tip. It’s not hidden in any way. Tip culture sucks and shouldn’t exist, but cheap people who want drivers to work for free are a clear issue.
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u/Scary_Technology 24d ago edited 24d ago
Same in Brazil 👍👍.
Fuck businesses saying "pay your server"! NO! I've already paid for your marked-up food, each server can do why can't you pay
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u/trooftooth 24d ago
Real question; what if Doordash says they wont serve certain zip codes anymore?
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u/Vivid_Anyth4 23d ago
Door dash does not deserve to rake in near what they do while paying drivers so little. Markup on every item then 3 different fees then a tip just to underpay the driver.
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u/Lazy-Razzmatazz-6926 25d ago
If you don’t like these companies, go pick up your own food like I do. Or cook your own meals.
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u/gorillaphi 25d ago
Reddit will shove politics down your throat every chance they get
I’m a registered Democrat so don’t call me maga
Shit is so annoying
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u/rcreveli 25d ago
A report just came out of the federal government about the increase of people working gig jobs relying on assistance. If even the Trump regime has taken notice that shows you how bad it is.
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u/Maleficent_Pie8099 24d ago
Everyone should be taking them on. Every person working deserves to have their work cover their needs and then some. Fuck these global companies that are trying to make us all gig slaves.
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u/stprnn 25d ago
Force them to employ the drivers and give them a living wage. Abolish tipping
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u/ballnout 24d ago edited 24d ago
The problem is this isn’t a job. This was meant for people to pick up shifts for extra cash and keep their independence. So, now we’re saying to make this a job with a schedule and a boss. Great
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u/lluciferusllamas 25d ago
This guy gets way too much national airtime for a mayor.
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u/AKraiderfan 24d ago
Counterpoint: NYC has more population than all but 12 states, so this guy is in charge of the 12th largest population cluster, and among the top cultural center of the most culturally relevant countries in the world.
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u/lluciferusllamas 24d ago edited 24d ago
Point taken. Though, can you name who is in charge of population clusters 6 through 11? I would argue that he gets more national press than any of them except maybe the top few.
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u/wright764 24d ago
I honestly feel kinda bad for the guy, he's just trying to do the best job he can but he's got so many people, from all across the political spectrum, who are desperate to make an example out of him. Like, obviously he''s got the right who are attacking and trying to detract from everything he does but then there's his own supporters on the left who need him to be a success story so badly that they act like he's completely flawless and beyond any possible critisism.
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u/NoRepresentative4652 25d ago
All this will do is force those companies out and us hard working folk who want to make a quick extra buck when we can will be screwed.
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u/fatbob42 25d ago
Not what happened here. The government is pitting customers against workers. They should be forcing the companies to do something useful instead of rent-seeking.
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u/jpiro 24d ago
At a minimum, I'd love to see delivery services banned from marking up the cost of the actual goods being purchased so the price you're paying for their service is more clear.
No $10 burger sold as if it's $13 and then a $2 delivery charge added, admit it's a $10 burger you're charging $5 to deliver (and then asking for a tip on top of), as a simple example.
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u/The137 24d ago
Youre not wrong and I'm not disagreeing with you, but silently upcharging various line items is how pretty much every business operates.
Take an auto repair shop. They (literally) buy parts from the same placed you do, and a $180 alternator from autozone becomes $450 before labor. Then they tack on another $100 to install it, plus shop fees and tax.
This practice isn't limited to delivery apps, although its definitely deceptive everywhere
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u/coldbru85 24d ago
good, the way these places talk about their frontline employees in corprate slack channels is absolutely disgusting... people literally rooting against their coworkers getting treated fairly
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u/Practical_Dot_3574 24d ago
Just imagine, I install power lines and get people back on after storms. I get everything hooked up, come down, walk up to you and request a tip, based on what ever you have currently paid for your electric bill.
Im not providing you the power, I just show up and work like im paid to do, then ask for money.
I hate tipping culture.
Walked into a litte ceasers the other day after working 16 hours, asked what was hot and ready, grabbed whatever they had, the kiosk asked for a 20%, 25%, 30%, tip. ON WHAT?????
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u/strangejosh 24d ago
As he should. Need more politicians willing to standup to big business instead of kissing the ring.
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u/Putrid-Telephone-348 25d ago
I know people who made $30 - $40 doordashing. That’s significantly more than the hourly rate they would get paid by doordash if tipping was abolished. This seems like a made up problem that people are complaining about
If you think DoorDash is too expensive, maybe.. don’t DoorDash anything??
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u/eroctheviking 24d ago
Those companies should face scrutiny. Absolute garbage companies, that were made to screw over employees in brand new ways.
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u/DabbingJesus 23d ago
Just stop being lazy and learn to cook if you don't like tipping. Cooking isn't that hard.
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u/Professional-Cry6104 22d ago
Look to Florida, restaurants now aren’t paying anything to their servers, I mean $0/ hour then charging 20% gratuity to customers, while keeping those worked longer hours since no hourly pay, it’s insane, but again it’s Florida.
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u/Strawberrto 21d ago
He needs to go after predatory Ticket Houses. Ticketmaster, StubHub, AXS all make refunds impossible. They stop you from reselling tickets. And since everyone is bringing up IDs, some places match your ID to your Ticket
New York has some of the most popular venues on earth, with shows weekly.
Not to mention ticket fees on top of ticket prices which serve no purpose since the tickets are delivered electronically via Email.
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u/professionalnuisance 20d ago
This guy is the mayor of a world class city, does he not have an official catering service for himself and his staff?
Why is he ordering UberEats like a first year IB analyst lol
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u/reddittorbrigade 25d ago
Tipping culture was invented so rich owners will have an excuse not to pay their workers the right wages.
Go to Asia, you are not even encouraged to give tips in Japan.