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New York City has intensified its campaign against food delivery platforms by suing Motoclick for alleged wage theft, retaliation, and violations of local labor laws.
The legal action, filed by the city’s Department of Consumer and Worker Protection, accused the Bolivia-based delivery service of systematically taking money from workers through fees and unpaid wages.
NYC alleges system of illegal fees
The Manhattan Supreme Court filing claimed Motoclick “stole directly from its own workers” by deducting $10 fees for canceled orders and subtracting refunded orders from courier pay. The suit stated that Motoclick “owes workers millions of dollars in stolen pay and damages,” as the city pushes to sue the company “out of existence.”
Mayor Zhoran Mamdani, framed the lawsuit as part of a broader effort to hold delivery platforms accountable. He said during a news conference that the move “is an indicator of the new era that we are here in New York City, and that is a new era where it’s not just holding Motoclick to account, but it’s holding any app company to account if they are operating outside of the rules and the laws of New York.”
Motoclick bills itself as a third-party delivery solutions service that integrates with apps such as Uber Eats, DoorDash and Grubhub while promoting lower fees for clients. The city argued in its filing that Motoclick operated as a scam that “targets and steals from immigrant workers,” citing more than 20 complaints in 2024.
Workers blocked after seeking wages
The suit described practices that forced couriers to accept deliveries “blindly” without knowing the address, tip, or pay until after completion. It stated that workers sometimes finished shifts owing Motoclick money due to “illegal” fees, including charges for canceled or damaged orders. A review of dozens of pay statements “showed one or more illegal fees,” according to court documents.
The city said Motoclick retaliated against those who complained by blocking logins or permanently deactivating accounts. The complaint seeks treble damages and additional penalties for other violations.
The filing follows an allegation days earlier that DoorDash and Uber Eats prevented delivery workers from earning more than $550million in tips. Mayor Mamdani characterized both actions as part of his crackdown on “predatory” apps.
He added: “To those, however, who think they can make a profit while stealing from their workers, while breaking the law, make no mistake. We will have those workers’ backs each and every time.”
Sam Levine, the department’s commissioner, said “billion-dollar corporations” should be on notice as the city increases pressure on platforms that rely on delivery labor without employing workers directly.
