DoorDash (DASH) and Uber (UBER) Fail to Block NYC Tipping Law Implementation

Written by Emily J. Thompson, Senior Investment Analyst

DASH-0.66%

Source: seekingalpha

Updated: 6d ago

0mins

Source: seekingalpha

Legal Implementation Hurdle: Judge George Daniels ruled that DoorDash and Uber failed to demonstrate the necessity of blocking the new law, which will require delivery platforms to prompt a minimum 10% tip at checkout to ensure minimum earnings for drivers.
Industry Opposition: Both DoorDash and Uber argue that mandatory tipping forces customers to tip for services not rendered, potentially leading to drivers rejecting low-tip orders, highlighting the industry's dissatisfaction and concerns regarding the new law.
Consumer Reaction Survey: A WalletHub survey indicates that nearly 90% of respondents believe tipping culture has gotten out of control, with 30% tipping less when prompted, suggesting that the new law may provoke consumer discontent and backlash.
Policy Impact Analysis: A DoorDash executive stated that forcing tips could be seen as a tax, emphasizing that consumers should decide whether to tip, reflecting a growing tension between delivery platforms and consumers amid economic pressures.

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DASH

$205.29+Infinity%1D

Analyst Views on DASH

Wall Street analysts forecast DASH stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for DASH is 282.32 USD with a low forecast of 205.00 USD and a high forecast of 360.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

30 Analyst Rating

24 Buy

6 Hold

0 Sell

Strong Buy

Current: 206.660

Low

205.00

Averages

282.32

High

360.00

Current: 206.660

Low

205.00

Averages

282.32

High

360.00

Stifel

Hold

downgrade

$253 -> $224

2026-01-27

New

Reason

Stifel

Price Target

$253 -> $224

AI Analysis

2026-01-27

New

downgrade

Hold

Reason

Stifel lowered the firm's price target on DoorDash to $224 from $253 and keeps a Hold rating on the shares. Third-party data suggests the e-commerce group had a "healthy" Q4 overall, though recent commentary from Amazon suggests there may be incremental pricing pressure on the consumer in 2026, the analyst tells investors in a preview for the e-commerce and consumer app group.

KeyBanc

Overweight

maintain

$280 -> $275

2026-01-20

Reason

KeyBanc

Price Target

$280 -> $275

2026-01-20

maintain

Overweight

Reason

KeyBanc lowered the firm's price target on DoorDash to $275 from $280 and keeps an Overweight rating on the shares. The firm's latest Mobility and Delivery Survey highlighted improving adoption rates across ridesharing, food delivery, and grocery delivery, causing us to raise 2026E EBITDA across the group. DoorDash continues to gain material share in food and grocery delivery, while quickly increasing DashPass subscribers, KeyBanc says. Net, it views this as a favorable backdrop across its coverage universe but is adjusting its price target to reflect broader conservatism.

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About DASH

DoorDash, Inc. is engaged in providing services that reduce friction in local commerce and help merchants connect with consumers in their communities. The Company's primary offerings include the DoorDash Marketplace and the Wolt Marketplace (together, the Marketplaces), and its Commerce Platform. The Company's Marketplaces operate in over 30 countries across the globe and provide an integrated suite of services that help merchants establish an online presence, connect with consumers in their communities, and solve mission-critical challenges, such as customer acquisition, demand generation, order fulfillment, merchandising, payment processing, and customer support. It also offers advertising as a value-added service through its Marketplaces to help merchants and consumer packaged goods companies increase consumer engagement. The Company also has offsite advertising capabilities. Its white-label delivery fulfillment services include DoorDash Drive On-Demand and Wolt Drive.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.