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September 10, 2021 02:00 pm

Uber Eats, DoorDash, Grubhub Sue New York City Over Legislation on Commission Caps

Food-delivery companies DoorDash, Grubhub and Uber Eats have sued New York City over a legislation to license food-delivery apps and to permanently cap commissions they can charge restaurants. From a report: The three food-delivery companies filed a lawsuit in federal court in New York late on Thursday. The companies are seeking an injunction that would prevent New York from enforcing the fee-cap ordinance adopted last month, as well as unspecified monetary damages and a jury trial. The New York City Council approved in August a legislation which limits the amount that food-delivery companies can charge restaurants to use their platforms and requires them to obtain operating licenses that are valid for two years. read more "Those permanent price controls will harm not only Plaintiffs, but also the revitalization of the very local restaurants that the City claims to serve," the companies said in the lawsuit filed on Thursday. The suit argues that the legislation is unconstitutional because "it interferes with freely negotiated contracts between platforms and restaurants by changing and dictating the economic terms on which a dynamic industry operates."

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