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Mamdani criticized DoorDash CEO Tony Xu over his comments about a “greedy algorithm” as New York City announced the settlement following an investigation by the Department of Consumer and Worker Protection. City officials say more than 260,000 delivery workers were underpaid, unpaid or paid late, with more than $115 million set to go directly to workers.

The settlement also introduces new monitoring measures designed to track DoorDash's compliance with New York City's delivery-worker pay laws.

The case is being described by New York City officials as the largest worker settlement in the city's history, raising major questions about gig-economy pay, algorithmic management, delivery-worker rights and corporate accountability.

#ZohranMamdani #Mamdani #DoorDash #DoorDashSettlement #DoorDashNews #NYCNews #NewYorkCity #DeliveryWorkers #DeliveryWorkerRights #GigEconomy #GigWorkers #TonyXu #DoorDashCEO #MamdaniVsDoorDash #DoorDashWorkers #WorkerRights #LaborNews #NYCPolitics #BreakingNews #USNews #Algorithm #GreedyAlgorithm #FoodDelivery #NYCWorkers #DeliveryDrivers

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00:00In 2023, when the city began enforcing a minimum pay rate for delivery workers, DoorDash left time out of the
00:07count, time on canceled trips and trips that crossed city limits.
00:12Investigators at our incredible Department of Consumer and Worker Protection went through terabytes of DoorDash's own data.
00:20After analyzing 152 million payments and 110 million hours of work, they arrived at a staggering conclusion.
00:31DoorDash had underpaid more than 260,000 delivery workers across New York City between April of 2022 and June of
00:412026, often in violation of the minimum pay rate.
00:46Today, after years of corporate greed and impunity, we are holding DoorDash to account.
00:54I am proud to announce that DoorDash will pay more than $131 million, the largest settlement for food delivery workers
01:04ever secured in American municipal history,
01:06and a landmark win for those who have been mistreated and abused for years with nowhere to turn.
01:12Two months ago, Tony Hsu, the CEO of DoorDash, gave business owners a piece of advice.
01:19A CEO, he said, has to take the greedy algorithm and keep going all the way to see if there
01:27is more.
01:27In computer science, a greedy algorithm is one that makes the most optimized, best short-term outcome choice at every
01:35step and never weighs the consequences.
01:38New York City and the tens of thousands of delivery workers who call our city home have reckoned with greed
01:45as a business model for far too long.
01:48Every day, in heat, in snow, and in rain, delivery workers carry goods and food to every corner of the
01:56city.
01:56Early morning egg sandwiches, late night lo mein, and the emergency Pepto-Bismol that could not have come sooner.
02:03Thousands of them deliver for DoorDash, and thousands of them have felt the human cost of the greedy algorithm.
02:12For years, DoorDash failed to count every hour worked by delivery workers.
02:18This was not a rounding error or an accidental mistake.
02:21In 2023, when the city began enforcing a minimum pay rate for delivery workers, DoorDash left time out of the
02:30count, time on canceled trips, and trips that crossed city limits.
02:35Investigators at our incredible Department of Consumer and Worker Protection went through terabytes of DoorDash's own data.
02:42After analyzing 152 million payments and 110 million hours of work, they arrived at a staggering conclusion.
02:53DoorDash had underpaid more than 260,000 delivery workers across New York City between April of 2022 and June of
03:032026, often in violation of the minimum pay rate.
03:08Today, after years of corporate greed and impunity, we are holding DoorDash to account.
03:16I am proud to announce that DoorDash will pay more than $131 million, the largest settlement for food delivery workers
03:26ever secured in American municipal history,
03:29and a landmark win for those who have been mistreated and abused for years with nowhere to turn.
03:35City Hall will not sit idly by while a megacorporation that made nearly a billion dollars in profits last year
03:42rips off the working people who keep our city moving.
03:46Thanks to the work of DCWP, DoorDash will now have to pay more than $115 million directly to more than
03:54260,000 delivery workers.
03:57No worker will have to file a claim or submit evidence.
04:01Our administration has already identified who is owed, and in late October, workers will receive an email detailing their exact
04:10amount.
04:11But we know accountability does not end when a check clears.
04:15That is why, as the deputy mayor said, for three years, DoorDash must also send DCWP detailed data every month
04:24to check compliance on minimum pay, maximum distance, trip disclosures, and pay and trip and tip transparency.
04:32To ensure those numbers are accurate, we are relying on the people who know this work best, the workers themselves.
04:41As you have heard, the Workers' Justice Project and the Workers' Algorithm Observatory are engineering software that lets delivery workers
04:48record the DoorDash app and share it directly with the city.
04:52For the first time, workers will have the power to crowdsource data and investigate the black box algorithms that dictate
05:01their schedules and pay.
05:03DoorDash cannot prevent or penalize a worker for using this tool.
05:07And if DoorDash tries, we will fast-track any retaliation case to get that worker reinstated.
05:13Today's win builds on the work we have been doing since January to ensure that every delivery worker is paid
05:20what they are owed.
05:21That includes a settlement of more than $5 million in back pay and penalties from Uber Eats, Hungry Panda, and
05:27FanTuan, and more than $104 million won in additional tips.
05:31To every delivery worker, check your email in late October at the address you last used with DoorDash.
05:38If you have questions about what you are rightfully owed, go to nyc.gov slash DoorDash.
05:43And to any corporation that has built a business model on greedy algorithms and worker exploitation, consider this your notice.
05:51If you keep trying to rip off New Yorkers, we will be happy to make history again.
05:57This is New York City, where hard work pays and greed will cost you.

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