DoorDash to pay $131.5 million to resolve New York City probe over delivery workers' pay

DoorDash will provide nearly $115 million of relief to about 264,000 workers, whom it calls Dashers, with a median payout of about $48. It accepted a $16.7 million civil fine.

"Simply put, we screwed up," San Francisco-based DoorDash said in a statement. "Our mistakes meant some Dashers were underpaid or paid late. While these mistakes weren't intentional, that doesn't make them okay."

The payout includes $83 million to resolve a dispute over how to calculate pay for workers who were logged into the company's app but not actually making deliveries. Another $12.3 million addresses payments that were missed or arrived days or weeks late.

DoorDash also agreed to send detailed pay data to the city every month for three years.

At a press conference, Mamdani called the settlement "part of a larger commitment to hold delivery companies accountable." He said DoorDash, through its use of "greedy algorithms," failed to comply with the 2023 city law intended to improve pay for delivery workers.

DoorDash said many errors resulted from deliveries that crossed city boundaries, had multiple pickup or drop-off locations, or were only partially fulfilled or canceled. It said other errors resulted from technical bugs, or having incomplete banking information for workers. The company said it has fixed technical issues that caused the mistakes.

Shares of DoorDash rose 0.2% in afternoon trading.