New York City Officials Crack Down on Food Delivery Apps Over Minimum Wage Violations
A $5.2 million settlement between New York City and three food delivery apps, Uber Eats, Fantuan, and HungryPanda, marks a significant shift in the city's regulatory approach to tech platforms. As part of the agreement, these companies will pay millions in restitution to thousands of workers who were wrongfully denied minimum wages.
According to Mayor Zohran Mamdani, Uber Eats will be responsible for paying out the bulk of the settlement - over $3.1 million to around 48,000 workers citywide. The company will also reinstate hundreds of workers who were deactivated without cause between December 2023 and September 2024.
Fantuan, another food delivery platform, has agreed to pay more than $468,000 in restitution to nearly 300 workers and face penalties totaling $52,000. In contrast, HungryPanda owes over $1 million in restitution to around 1,000 workers and faces penalties of up to $106,000.
The city's Department of Consumer and Worker Protection (DCWP) has been cracking down on app-based businesses, finding numerous violations of minimum wage rules. "When workers speak up and are met with silence, retaliation, or automatically removed from the app - but no more," said Aboubacar Ki, a delivery worker and organizer. "The era of app impunity is over. We are 80,000 strong, and we'll be holding you accountable."
The settlement comes as Mayor Mamdani's administration increases enforcement of labor regulations for gig economy workers. This follows the passage of new legislation by the City Council, which protects app-based drivers against sudden deactivation from platforms like Uber and Lyft.
In a statement, Josh Gold, an Uber Eats spokesperson, acknowledged that the company had made mistakes in the past but expressed relief that the matter has been resolved. HungryPanda stated its commitment to supporting delivery workers while meeting city requirements. Fantuan declined to comment on the settlement.
The DCWP Commissioner noted that the settlement highlights a broader shift towards greater regulation of app-based businesses. "The era of giant corporations juicing profits by underpaying workers is over," said Sam Levine.
A $5.2 million settlement between New York City and three food delivery apps, Uber Eats, Fantuan, and HungryPanda, marks a significant shift in the city's regulatory approach to tech platforms. As part of the agreement, these companies will pay millions in restitution to thousands of workers who were wrongfully denied minimum wages.
According to Mayor Zohran Mamdani, Uber Eats will be responsible for paying out the bulk of the settlement - over $3.1 million to around 48,000 workers citywide. The company will also reinstate hundreds of workers who were deactivated without cause between December 2023 and September 2024.
Fantuan, another food delivery platform, has agreed to pay more than $468,000 in restitution to nearly 300 workers and face penalties totaling $52,000. In contrast, HungryPanda owes over $1 million in restitution to around 1,000 workers and faces penalties of up to $106,000.
The city's Department of Consumer and Worker Protection (DCWP) has been cracking down on app-based businesses, finding numerous violations of minimum wage rules. "When workers speak up and are met with silence, retaliation, or automatically removed from the app - but no more," said Aboubacar Ki, a delivery worker and organizer. "The era of app impunity is over. We are 80,000 strong, and we'll be holding you accountable."
The settlement comes as Mayor Mamdani's administration increases enforcement of labor regulations for gig economy workers. This follows the passage of new legislation by the City Council, which protects app-based drivers against sudden deactivation from platforms like Uber and Lyft.
In a statement, Josh Gold, an Uber Eats spokesperson, acknowledged that the company had made mistakes in the past but expressed relief that the matter has been resolved. HungryPanda stated its commitment to supporting delivery workers while meeting city requirements. Fantuan declined to comment on the settlement.
The DCWP Commissioner noted that the settlement highlights a broader shift towards greater regulation of app-based businesses. "The era of giant corporations juicing profits by underpaying workers is over," said Sam Levine.
! It's about time these food delivery apps are held accountable for their actions 
. These workers have been fighting for justice and getting screwed by the companies 
. A $5.2 million settlement is a great start, but I wish it went to more people who were affected 
.
! He's got the stats on 80,000 workers being affected and they're not going down without a fight 
. The city's DCWP is doing a great job cracking down on these companies and making sure they follow labor regulations 
.
. These apps need to start taking care of their people and treating them with respect 
.
. Will they start following suit or try to find ways to avoid paying out? Only time will tell 
, but for now, I'm just happy to see some justice being served 
!
I'm actually kinda surprised this happened - all these food delivery apps, they're basically making their own rules and screwing over workers left and right... it's only a matter of time before someone really gets hurt or exposed. The fact that the city's cracking down on them now is like, about damn time 
. I mean, who benefits from this gig economy thing? Not the workers, that's for sure. They're just pawns in these companies' games. It's good to see some consequences coming their way, but at the same time... $5.2 million settlement? That's still a pretty small price to pay for all the screwing they've done 
I'm loving how NYC is cracking down on food delivery apps for messing with their minimum wage laws 
. Like, these companies think they can just take advantage of their workers and get away with it? Nope! The city is finally holding them accountable 
. It's crazy how many people were being deactivated from apps without cause or getting paid minimum wage 
.
, my mind is made up: food delivery apps gotta be held accountable for their actions 
. I'm glad Mayor Mamdani's admin is cracking down on these companies and making sure they follow labor regulations 
Should be more transparent about their business practices! 
. I mean, I get it, companies make mistakes, but to deny workers their minimum wage and then try to sweep it under the rug? No way 
. It's awesome to see the city stepping in and holding these big corporations accountable 
]
. This could be a model for other cities to follow. We need more voices like Aboubacar Ki's - workers who are standing up for their rights and not being silenced 
.
They've been exploiting workers left and right, denying them their rightful wages 
. We need more regulations like this to protect gig economy workers and ensure they're getting fair pay 
. This new legislation protecting app-based drivers is a game-changer 
!