'We screwed up': Doordash admits underpaying New York workers

DoorDash has agreed to pay a $131.5m (£99m) settlement to New York City regulators after the food delivery giant admitted failing to compensate thousands of workers correctly or on time.

"Simply put, we screwed up," DoorDash said. "Our mistakes meant some Dashers were underpaid or paid late."

The agreement with the Department of Consumer and Worker Protection follows a city investigation into wage violations, with a significant share of the payout addressing how DoorDash calculates compensation for the time delivery drivers spend waiting for orders.

The settlement marks another chapter in an ongoing battle between so-called gig economy platforms and municipal leaders.

The likes of Uber Eats and Grubhub have repeatedly clashed with city officials over tipping laws, minimum wages and data-sharing requirements.

The majority of DoorDash's settlement - $83m - is to resolve a disagreement over how to calculate pay for the time workers spend online between deliveries.

Pay for idle time between orders is a major industry flashpoint.

Traditionally, apps only paid drivers during active deliveries but New York's rules require compensation for all time logged into the app.