New York State Attorney General Letitia James announced two days ago [December 17, 2024] that she managed to recover $4 million from the now-defunct Drizly Platform. This platform was engaged in the delivery of alcohol to customers, and was partially owned by the Uber Platform. And the money in question was paid as tips to people working as Delivery Drivers for Drizly, but was never paid to them.
The prosecutor’s investigation began in June 2023, and found that Drizly actively encouraged customers to leave tips for Delivery Drivers, including through an automatic tip mechanism of 10% added when paying for an order. However, instead of paying the tips directly to the Delivery Drivers, the tips were distributed to liquor store owners, who distributed them at their own discretion.
This isn’t the first time Drizly has been accused of failing to pay tips to its workers. In 2022, the platform agreed to pay Washington-based Delivery Drivers $1.95 million in back tips from 2019 to 2022.
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