DoorDash has agreed to remit $131.5 million in settlement of allegations that it undercompensated its delivery workers in New York City, Mayor Zohran Mamdani announced Tuesday.

The agreement, which officials characterized as the most extensive worker settlement in the city's history, further obliges the company to accede to a novel monitoring regime designed to guarantee adherence to the city's delivery worker pay statutes.

In a statement, DoorDash acknowledged its failings, conceding: “Simply put, we screwed up.”

"Although these errors were inadvertent, their unintentionality does not render them excusable.

At DoorDash, we hold ourselves to a standard of operational excellence – and this fell conspicuously short of that standard; neither was it tolerable.

Dashers ought to be remunerated in full, punctually, on every occasion.

We extend our apologies to those Dashers whom we failed," the company said.

The bulk of the settlement is to be disbursed to upwards of 260,000 workers who were remunerated inadequately, not at all, or belatedly for deliveries made on behalf of DoorDash, per City Hall.

The company is likewise to remit approximately $16 million in civil penalties and ancillary costs to the city.

“When a worker earns a wage, they are entitled to be paid that wage – not tomorrow, not after a lawsuit, but promptly and in full,” Mamdani said in a statement.

“DoorDash underpaid more than 260,000 workers, and today we are recovering that money.”

DoorDash attributed many of the payment discrepancies to “technical bugs or happened in complicated situations,” citing as examples deliveries that extended beyond city boundaries, entailed multiple pickup or drop-off locations, or involved deliveries that were cancelled or only partially completed.

In the preceding year, the company consented to disburse nearly $17 million in order to resolve allegations that it had inequitably appropriated customer gratuities to offset the remuneration of its delivery personnel in New York, instead of permitting drivers to retain those tips over and above their guaranteed wages.