Uber Eats, Grubhub, DoorDash sue NYC for limiting fees the apps can charge restaurants

techcrunch.com
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Food ordering and delivery platforms DoorDash, Caviar, Grubhub, Seamless, Postmates and Uber Eats have banded together to sue the City of New York over a law that would permanently limit the amount of commissions the apps can charge restaurants to use their services. The Wall Street Journal first reported the news that the companies filed […]
Food ordering and delivery platforms DoorDash, Caviar, Grubhub, Seamless, Postmates and Uber Eats have banded together to sue the City of New York over a law that would permanently limit the amount of commissions the apps can charge restaurants to use their services.

The Wall Street Journal first reported the news that the companies filed suit in federal court on Thursday evening and are seeking an injunction that would prevent the city from enforcing the legislation, unspecified monetary damages and a jury trial.

Last year, the city council introduced temporary legislation that would prohibit third-party food delivery services from charging restaurants more than 15 percent per delivery order and more than 5 percent for marketing and other nondelivery fees in an effort to help ease the strain on an industry struggling from pandemic lockdowns. The companies filing suit against the city claim the limit on fees, which was made permanent last month under a bill sponsored in June by Queens Councilman Francisco Moya, has already cost them hundreds of millions of dollars.

"Throughout the COVID-19 pandemic, third-party platforms like Plaintiffs have been instrumental in keeping restaurants afloat and food industry workers employed, including by investing millions of dollars in COVID-relief efforts specifically for local restaurants," the lawsuit reads. "Yet, the City of New York has taken the extraordinary measure of imposing permanent price…
Rebecca Bellan
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