Uber Eats and delivery apps will pay millions in city settlement

The city announced a settlement requiring Uber Eats, Fantuan and HungryPanda to pay a combined $5.195 million to more than 49,000 delivery workers for minimum-pay violations tied to canceled trips, and Uber Eats agreed to reinstate some deactivated accounts.

New York City reached a settlement with several app-based delivery companies after a city investigation found they did not meet required minimum-pay rules for time spent on canceled trips between December 2023 and September 2024. The agreement covers multiple companies and will provide restitution and civil penalties to affected delivery workers. Uber Eats, Fantuan and HungryPanda are named in the settlement and are required to make payments to workers. The city first adopted minimum-pay rules for app-based delivery workers in 2021, which set the context for this enforcement action. Key facts: - The settlement requires Uber Eats, Fantuan and HungryPanda to pay a combined $5.195 million in restitution, penalties and fees to more than 49,000 delivery workers. - Under the agreement, Uber Eats will pay $3,150,000 in restitution plus $350,000 in penalties and fees; Fantuan will pay about $468,000 in restitution plus more than $52,000 in penalties and fees; HungryPanda will pay about $1,068,672 in restitution plus about $106,327 in penalties and fees. - The city said the violations relate to failing to pay the minimum pay rate for time on canceled trips during the December 2023–September 2024 period. - The mayor's office said Uber Eats agreed to reinstate worker accounts deactivated during that period, which the city estimated could affect up to 10,000 workers. Summary: The settlement requires payments and some account reinstatements to address alleged minimum-pay violations for canceled trips, affecting thousands of delivery workers. Undetermined at this time.