New York, January 14, 2026, 14:41 ET — During the regular session
- Uber shares dropped after New York City claimed that changes to the app’s design slashed delivery workers’ tips by over $550 million.
- Uber scheduled its fourth-quarter earnings call for Feb. 4 and revealed it will change the non-GAAP profit metrics it emphasizes starting in 2026.
- DoorDash and Uber are challenging a new city tipping rule in court, as enforcement is set to begin later this month.
Shares of Uber Technologies dropped 1.3% to $84.28 in afternoon trading following a New York City report that accused Uber Eats and DoorDash of tweaking their interfaces in ways that slashed delivery-worker tips by roughly $554 million. A commissioner from the city’s consumer agency labeled the practice a “massive scheme” to cut worker pay. 1
The timing is crucial. The report comes just before a new city law kicks in, mandating delivery apps to offer a tipping option at or before checkout. That rule goes live on Jan. 26. Uber and DoorDash have challenged the city over this mandate, the report said. 2
Uber is rolling out new benchmarks as it heads into earnings. The company will report fourth-quarter and full-year 2025 results on Feb. 4 at 8:00 a.m. ET. An SEC filing also revealed that starting Q1 2026, Uber will drop adjusted EBITDA profit as a key metric, swapping it for non-GAAP operating income, net income, and earnings per share. 3
Adjusted EBITDA is a popular “adjusted” profit metric that excludes interest, taxes, and certain non-cash expenses. Uber’s filing noted that the updated non-GAAP measures will now include depreciation and stock-based compensation, tightening the difference from traditional accounting figures.
John Horton, DoorDash’s head of North America public policy, dismissed the city’s findings on tips as “flat out wrong.” He added that shifting tipping to after checkout “isn’t novel or nefarious.” Uber declined to comment, according to Business Insider.
Pressure hit more than just Uber. DoorDash shares slipped 2.3%, while Lyft dropped 1.6%, as investors digested the impact of local regulations on delivery and ride-hailing economics.
BNP Paribas Exane kicked off coverage of Uber with an “outperform” rating and set a $108 price target, MarketBeat reported. This fresh buy call comes as the stock has shown volatility in recent trading sessions. 4
For Uber, the New York clash touches a sore point. Tips make up a significant chunk of delivery workers’ earnings, yet tweaks to the checkout process can shift conversion rates, order volume, and how platforms set fees — factors that directly impact delivery margins.
The accounting change introduces another variable. Investors typically rely on adjusted EBITDA to make straightforward comparisons between gig platforms; resetting this metric could muddy those comparisons, despite Uber’s claim that it more accurately captures operating performance.
The downside is clear: if the city’s rule holds up in court and enforcement steps up, Uber may see rising compliance costs, legal fees piling up, and possibly softer demand if riders shy away from higher prices or altered prompts.
Next on the docket: traders will track if the Jan. 26 tipping rule rolls out smoothly in New York. Then, all eyes turn to Uber on Feb. 4, as the company outlines delivery trends and details its approach to showcasing profitability using the new non-GAAP framework.
