NEW YORK (WABC) — Food delivery platform HungryPanda will pay more than $875,000 after an investigation found it illegally overcharged hundreds of restaurants for delivering meals.<\/p>\n
Mayor Zohran Mamdani announced the settlement Wednesday at the red panda exhibit at the Prospect Park Zoo.<\/p>\n
The city’s Department of Consumer and Worker Protection probe found HungryPanda mischaracterized the illegal overcharges, frequently relabeling charges and bundling multiple fees into a single item.<\/p>\n
The restitution and penalties will go to more than 380 restaurants, many of which are immigrant-owned.<\/p>\n
HungryPanda is popular within the city’s Asian immigrant communities.<\/p>\n
This overcharging occurred between January 2022 and September 2024, when pandemic-era rules capped fees at 23%, and before June 30, 2025 when the cap was lifted to the current 43%.<\/p>\n
“Too many neighborhood restaurants are already navigating high costs and razor-thin margins,” said Mayor Mamdani. “They should not also have to contend with hidden, illegal fees from the apps they rely on to reach customers. This settlement returns money to the businesses that were overcharged and makes clear that New York City will enforce the law to protect small business owners.”<\/p>\n
This is the second settlement between the city and the food delivery app.<\/p>\n
In January this year, the mayor announced a $5.1 million settlement with Uber Eats, Fantuan, and HungryPanda that affected nearly 50,000 delivery workers<\/p>\n
Eyewitness News has reached out to HungryPanda for comment and are waiting to hear back.<\/p>\n
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