DoorDash and Uber lose lawsuit; New York City's mandatory checkout showing tips new rule takes effect next week

AASTOCKS
2026.01.23 17:08

DoorDash (DASH.US) and Uber (UBER.US) have filed a judicial challenge against New York City's law requiring delivery platforms to display a tip option at checkout, but they were unsuccessful in preventing the law from taking effect.

A U.S. federal judge on Friday rejected the companies' request for a temporary restraining order, and the law is set to take effect as scheduled on January 26, while the lawsuit filed by the two companies against New York City is still pending.

According to the regulation, platforms must show consumers a suggested tip option, with an amount not less than 10%. Delivery platforms are concerned that the new rule may lead consumers to feel that prices are too high at checkout, affecting their willingness to place orders

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