'We screwed up.' DoorDash admits mistakes in $131.5M settlement over NYC worker pay
NEW YORK -- DoorDash has agreed to pay $131.5 million to settle allegations it underpaid New York City delivery workers, ending a legal dispute that began during the early days of the Mamdani administration.
Mayor Zohran Mamdani is expected to announce what City Hall is calling "a historic settlement for workers" during an event Tuesday morning.
The city's Department of Consumer and Worker Protection accused DoorDash and Uber Eats in January of costing delivery workers more than $550 million through changes to their tipping systems.
A city report found that tipping on the platforms dropped sharply after changes were implemented in December 2023, with average tips falling from $3.66 per order to 93 cents in the first week after the changes took effect and later declining to 76 cents per delivery.
In a statement released Tuesday, DoorDash acknowledged mistakes in its payment system.
"Simply put, we screwed up. Our mistakes meant some Dashers were underpaid or paid late. While these mistakes weren't intentional, that doesn't make them okay. We pride ourselves on operational excellence at DoorDash - and this was not excellent, nor was it acceptable. Dashers should be paid in full, on time, every time. We are sorry to the Dashers we let down."
More details about the agreement are expected to be released at the mayor's announcement.
