NYC Mayor Forces Delivery Apps to Pay Back $4.6M Owed to Drivers

Uber Eats, Fantuan, and Hungry Panda ordered to repay wages and penalties for underpaying and deactivating workers.

Feb. 1, 2026 at 12:55pm

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In a major crackdown on delivery app companies, New York City's new mayor Zohran Mamdani and the Department of Consumer and Worker Protection announced that three major delivery apps - Uber Eats, Fantuan, and Hungry Panda - will be forced to repay $4.6 million in wages that were unfairly withheld from their delivery workers, known as "deliveristas." The settlements come after a sweeping investigation into broader industry practices, including those of GrubHub and DoorDash.

Why it matters

This action by the new worker-friendly mayoral administration sends a strong message that the era of delivery app companies exploiting their workers with impunity is over. The scale of the abuses uncovered highlights how exploitation has been baked into the app-based delivery business model, with workers routinely underpaid and deactivated without recourse.

The details

According to the details, Uber Eats unfairly deactivated and underpaid thousands of workers between December 2023 and September 2024. As part of the settlement, Uber Eats will have to pay $3.15 million in worker relief across over 48,000 workers, as well as $350,000 in civil fines to the city. The other two companies, Fantuan and Hungry Panda, were also forced to settle for underpaying their workers.

  • The investigation and settlements were announced in February 2026, just a month after Zohran Mamdani took office as the new mayor of New York City.
  • The Uber Eats violations occurred between December 4, 2023 and September 2, 2024.

The players

Zohran Mamdani

The newly elected mayor of New York City, who has taken a strong pro-worker stance and is cracking down on delivery app companies for exploiting their workers.

Sam Levine

The commissioner of the New York City Department of Consumer and Worker Protection, who announced the settlements with the delivery app companies.

Uber Eats

One of the major delivery app companies forced to pay $3.15 million in worker relief and $350,000 in civil fines for unfairly deactivating and underpaying thousands of workers.

Fantuan

One of the delivery app companies forced to settle for underpaying its workers.

Hungry Panda

One of the delivery app companies forced to settle for underpaying its workers.

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What they’re saying

“The era of giant corporations juicing profits by underpaying workers is over. I'm proud that this agency is not only returning full back pay, but is recovering damages and penalties to send a strong message that cheating workers will not be tolerated.”

— Sam Levine, Commissioner, Department of Consumer and Worker Protection (NYC Streetblog)

“For years, app companies treated the law as optional — hiding behind algorithms, stealing wages, and deactivating workers without consequence. The scale of these abuses proves what deliveristas have been saying for years: exploitation is not an accident — it's baked into the app delivery business model.”

— Ligia Guallpa, Executive Director, Workers' Justice Project (NYC Streetblog)

“For far too long, delivery and other online labor platform companies have not only underpaid workers, but deactivated them with abandon, denying workers the ability to make a living.”

— James Parrott, Senior Fellow, Center for New York City Affairs at The New School (NYC Streetblog)

“After DCWP notified us of the issue in August 2024, we immediately corrected it, agreed to pay more than the amount owed, and appreciate the new administration moving quickly to bring this to a fair conclusion.”

— Josh Gold, Spokesman, Uber (NYC Streetblog)

What’s next

The judge will decide on Tuesday whether to allow Uber Eats, Fantuan, and Hungry Panda to continue operating in New York City following the settlement.

The takeaway

This crackdown on delivery app companies by the new pro-worker mayoral administration in New York City sends a clear message that the exploitation of gig workers will no longer be tolerated. It highlights the need for stronger labor protections and enforcement to ensure app-based companies treat their workers fairly and compensate them properly.