PR & Comms

DoorDash Pays $131.5M and Admits 'We Screwed Up'

DoorDash will pay $131.5 million in the largest worker settlement in NYC history, telling Dashers: 'Simply put, we screwed up.' Plus MrBeast on video and Amazon blocking Meta's Muse.

The Scoop: DoorDash bluntly admits ‘we screwed up’ in $131.5 million settlement
The Scoop: DoorDash bluntly admits ‘we screwed up’ in $131.5 million settlementBC Gov Photos / Openverse

DoorDash will pay $131.5 million to settle a New York City investigation that found delivery workers were underpaid, paid late or, in some cases, not paid at all.

The New York Times reports that more than $115 million will go to roughly 264,000 workers, while $16.7 million will cover penalties and costs. The city called it the largest worker settlement in New York City history.

DoorDash addressed the situation in a statement on Tuesday.

"Simply put, we screwed up," the company said. "Our mistakes meant some Dashers were underpaid or paid late…While these mistakes weren't intentional, that doesn't make them okay."

The company blamed some of the problems on technical glitches and "complicated delivery situations," such as trips crossing city lines or canceled orders. DoorDash also disputes part of the city's interpretation of how workers should be compensated for time spent logged into the app between deliveries, but said it will use the city's calculation going forward.

The apology works. There is no "we regret any confusion" and no minimizing of the harm caused. DoorDash acknowledges the mistake openly, apologizes to the people affected and immediately explains what it is doing about it.

That directness matters because the company is not conceding every point. It still maintains that part of its pay calculation was legal. Instead of using that disagreement to dodge all responsibility, DoorDash separates the two things: here is what we got wrong, here is what we disagree about, and here is what we are changing anyway. The company still has a sizable trust problem to repair, but "we screwed up" is a stronger, more human starting point than any defensively worded corporate statement.

MrBeast makes the case for video

YouTube creator MrBeast and Rockefeller Foundation President Rajiv Shah argue that video storytelling can help people understand complex issues and motivate them to act.

The two organizations partnered last year to combine Beast Philanthropy's digital storytelling expertise with Rockefeller's experience tackling issues like hunger and poverty. In a New York Times opinion piece, MrBeast and Shah wrote that video can help philanthropy keep pace with media fragmentation.

"People are engaging with the videos too. The February MrBeast video 'I Built 10 Schools Around the World' has been watched more than 82 million times and liked 2.4 million times," they write. "Those numbers demonstrate the unique power video has to capture people's attention and inspire them to care."

The partnership rests partly on the observation that some institutions have struggled to reach younger audiences while creators have become increasingly influential sources of information and trust. Organizations may hold deep expertise but communicate it through complex explanations few people will engage with. Creators do the opposite: they take an idea, attach a human story and make the audience understand why it matters in a short clip.

That does not mean every brand should imitate MrBeast. It means communicators should think about video earlier in the process, asking which part of the story would be clearer, more credible or more useful if audiences could actually see it.

Amazon blocks Meta's Muse agent

Meta's new personal AI agent, Muse, hit the top spot on Apple's U.S. App Store within two weeks of its launch. But Meta is now running into questions about privacy, security and how much freedom AI agents should have to act on people's behalf, according to The Wall Street Journal.

Amazon has blocked Muse from shopping on Amazon.com. The retailer says Meta did not tell it the agent would access its site and that Muse does not identify itself while browsing. Amazon also raised concerns about how customer credentials could be handled. Meta has said Muse cannot see users' passwords or payment information and that credentials are kept in secure storage.

"We think it's fairly straightforward that third-party apps should operate openly and respect service provider decisions" about participating, an Amazon spokesperson told the outlet.

Meta has not responded publicly to Amazon's statement and declined to comment to the WSJ. Businesses, not just consumers, are the audience with something at stake if Muse fails. If other companies follow Amazon's lead, Meta will have to do more explaining to keep the tool operating. Teams rolling out new tools, especially where privacy is a concern, should be prepared to answer questions about how the tools will be used. Ignoring that is a reputational risk that could end a hot streak like Muse's.

Four networks suspend White House pool coverage

ABC, CBS, NBC and Fox News suspended their participation in White House pool coverage after the Trump administration barred CNN, MS NOW and Politico from White House grounds, Variety reports.

"The public has a vital interest in receiving accurate, independent information about its government," the networks said in a joint statement on X. "No administration should restrict a news organization because it objects to its reporting."

The statement is short but effective. Competitors speaking with one voice on an issue that affects all of them is hard to dismiss. When organizations with different audiences and interests align around a unified principle, the message carries more weight — a lesson that applies well beyond newsrooms.

Original: nytimes.com

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Amara Osei

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News editor covering industry trends and analytics at Marketing Herald.

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