New York City Mayor Zohran Mamdani has announced an $875,000 settlement with the food delivery platform HungryPanda for illegally overcharging restaurants with hidden "junk fees". The action, announced at the Prospect Park Zoo on Wednesday, is the city's first to hold a delivery app accountable for violating the rights of restaurant owners.
More than 380 affected restaurants, many of which are immigrant-owned and located in areas like Sunset Park, Brooklyn, and Flushing, Queens, will receive restitution. "For so many restaurants and businesses, it is already hard enough to balance daily costs... even harder, frankly, to stay afloat when a delivery platform steals hard-earned revenue," Mayor Mamdani stated.
Details of the Settlement and Violations
The settlement requires HungryPanda to pay over $580,000 in restitution to the restaurants, along with more than $294,000 in civil penalties and fees. The city's Department of Consumer and Worker Protection (DCWP) found the app violated local laws capping third-party food service fees at 15% for delivery and 5% for other services.
Commissioner Sam Levine joined the mayor in alleging the app "bamboozled hardworking New Yorkers." As part of the agreement, HungryPanda must now provide clear fee disclosures to users, implement new compliance policies, and submit annual compliance certifications to the city.
A Broader Crackdown on Corporate Practices
This settlement is part of a wider push by the Mamdani administration to combat exploitative fees and wage violations. It follows a separate January settlement of over $5 million involving Uber Eats, Fantuan, and HungryPanda for pay violations affecting nearly 50,000 delivery workers.
In that case, DCWP's investigation found HungryPanda failed to pay workers the mandated minimum rate between December 2023 and January 2024. The mayor has previously announced similar actions for fast-food and retail workers, vowing to continue targeting major corporations.
"We are putting abusers and violators of these laws on notice: If you break these laws, we will hold you accountable," Mamdani said. He emphasised the goal of creating a city where rule-followers are not disadvantaged by those who act with impunity.
Next Steps and Corporate Response
The administration has stated that ensuring compliance from HungryPanda and continuing to investigate other platforms are immediate priorities. The focus remains on protecting small businesses and workers from what the mayor terms "exploitative" practices.
HungryPanda did not immediately respond to a request for comment regarding the settlements. The company, which largely services Asian restaurants, must now adhere to the strict terms of the city's agreement or face further penalties.