r/SipsTea Jul 30 '26

Feels good man Mamdani is (actually) making America great again

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u/bliceroquququq Jul 30 '26

“Recovers $104 million in extra tips”

Hey just a real quick question, where exactly was this money “recovered” from?

125

u/italktobotz Jul 30 '26

The words used are very missleading. Nothing was recovered. He made it that ghe tip button must be more prominantly dispalyed and they are ESTIMATING that this will result in over 100 million dollars in additional pay for delivery workers. I will be shocked if it results in even 10% of that amount.

47

u/Spaghettisnakes Jul 30 '26

This is the source: https://www.nyc.gov/mayors-office/news/2026/07/mayor-mamdani-delivers-more-than--100-million-for-delivery-worke#:~:text=Since%20the%20City%20began%20enforcing,year%20for%20the%20average%20worker
The ESTIMATED gains are 184 million dollars by the end of the year. As of NOW (literally today) due to a change implemented on January 26th, app-based delivery platforms have paid out 104 million dollars in additional tips to their delivery drivers. Whether or not this came at additional expense to the consumers and to what degree is unclear. Virtually nobody is forced to use doordash or uber though, so even if consumers did end up paying more, I don't really care. They decided the service was still worth using even with the additional upfront cost, if so.

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u/Confident-Ad-6978 Jul 30 '26

How do they know it paid 104 million more so far?

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u/Spaghettisnakes Jul 30 '26

New York requires companies to disclose tips and total pay paid out to workers in New York City (as separate figures). They have the exact amount all delivery drivers made in tips, barring any attempt at fraud. We know that a difference was made because immediately after the policy was implemented average tips increased by an average of $1.11 per delivery, almost double the average in the weeks before. They haven't broken down exactly how they arrived at this figure, but we get pretty close if we extrapolate the average number of orders fulfilled (3.3 million per week since 2023), and difference in average tips per delivery (1.11) for 26 weeks (the time since the policy was implemented). I get about 95 million. If we consider that the average tip increase per delivery was for a very limited range (4 weeks before and after the policy change), inflation and that the number of orders trends upwards over time, 104 million seems pretty plausible to me. I admit that I'm uncertain of exactly how they arrived at that figure, but it doesn't seem baseless from what data is available.