Judge rejects DoorDash, Uber bid to block New York City tipping laws

NEW YORK, Jan 23 (Reuters) – A federal judge rejected DoorDash’s and Uber Technologies’ request to block New York City laws that would require food-delivery apps to provide customers an option to tip delivery workers when paying.

In refusing to issue a preliminary injunction, U.S. District Judge George Daniels in Manhattan said the companies did not show a clear likelihood of demonstrating that the laws, including a requirement that they suggest a minimum 10% tip, violated their constitutional free speech rights.

Daniels also said an injunction would not serve the public interest, in light of evidence that DoorDash’s and Uber’s practices have “on balance” led to lower tips for delivery workers.

“The tipping laws advance the city’s goals of enhancing cost transparency at the time of checkout, restoring consumer choice, and providing protections to delivery workers,” the judge wrote.

Daniels’ decision is dated January 22 and was made public on Friday.

DoorDash, Uber and their respective lawyers did not immediately respond to requests for comment. New York City’s Department of Consumer and Worker Protection did not immediately respond to a similar request.

(Reporting by Jonathan Stempel in New York; Editing by Aurora Ellis)