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Mamdani blasts DoorDash CEO's 'greedy algorithm,' NY slaps company with $131 million settlement
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Following an investigation into 152 million payments, New York City secured a landmark $131 million settlement with DoorDash for violating minimum pay standards. More than 260,000 delivery workers who were underpaid between April 2022 and June 2026 will receive direct payments starting in late October. The food delivery giant must also submit compliance data for three years.
DoorDash reaches $131.5M settlement with New York City over delivery workers’ pay
DoorDash said on Tuesday it reached a $131.5 million settlement of a New York City government probe that found the food delivery company underpaid or waited too long to pay workers.
The settlement with the city’s Department of Consumer and Worker Protection helps address the city’s longstanding concern that food delivery companies shortchange workers.
It came nearly eight months after the city agency accused DoorDash and rival Uber Eats of engineering what it called “design tricks” to deprive workers of more than $550 million in tips. The settlement includes a $16.7 million fine, DoorDash said.
DoorDash said it will provide nearly $115 million in relief to about 264,000 workers, whom it calls Dashers.
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NYC Mayor Mamdani reaches record DoorDash settlement for underpaid workers
Settlement is largest of its kind in any US city and is set to affect 260,000 delivery drivers.
New York City has finalised a more than $131m settlement with DoorDash amid allegations that the delivery company underpaid its workers.
The administration of Mayor Zohran Mamdani announced the settlement on Tuesday. It marked the largest settlement for delivery workers in any city in the United States, set to affect 260,000 workers. Of the total, $115m will go directly to the workers, while $16m will go towards civil penalties and other costs.
A nearly 70-page consent order, provided to Al Jazeera by the city’s Department of Consumer and Worker Protection (DCWP), found the San Francisco, California-based delivery giant failed to pay some of its workers the minimum amount required by law between December 2023 and June 2026.
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