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Third Party Food Delivery Prices Continue To Rise
(Michael M. Santiago/Getty Images)

DoorDash, Uber sue NYC over tipping law

According to data from the city, New Yorkers are paying higher fees and tipping less.

J. Edward Moreno

Food delivery giants DoorDash and Uber Eats said Thursday that they are suing New York City over a law that would prompt customers to tip at checkout as opposed to after their meals arrive.

The companies say the law is “essentially an added tax” and pressures consumers to tip. The law, which is poised to take effect in January, was a response to changes the companies made following a different law that set a minimum wage for the city’s delivery workers.

After the minimum wage law took effect in December 2023, DoorDash and Uber responded by moving their tipping prompt from checkout to after the food is delivered — delaying sticker shock for takeout as overall spending on the platforms steadily increases. According to data from the city, the result is that New Yorkers are paying higher fees and tipping less.

It’s not the first time the delivery giants have gone to war with the city. The two companies also sued unsuccessfully to block the minimum wage law.

The move also comes after Zohran Mamdani, a Democratic Socialist pro-worker candidate, won the race for New York City mayor and is poised to take office next month. DoorDash donated $1 million to a super PAC supporting Andrew Cuomo, the former governor who challenged Mamdani.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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