DoorDash, Grubhub and other delivery apps sue New York City over fee caps

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Angela Lang/CNET

A number of standard meals supply app makers are suing New York Metropolis over worth controls put in place throughout the COVID-19 pandemic that restricted the fee that these firms can cost eating places. 

In a lawsuit filed Thursday in New York, the businesses allege that the “now-indefinite laws bears no relationship to any public-health emergency” and that the worth controls are unconstitutional as a result of they intrude with “freely negotiated contracts” between the apps and eating places. The swimsuit, which was reported earlier by The Washington Publish, was filed by the mum or dad firms of DoorDash, Caviar, Grubhub, Seamless, Postmates and Uber Eats.

“New York Metropolis Council handed dangerous, pointless, and unconstitutional worth controls which go away us no selection however to resolve this matter in courtroom,” stated a DoorDash spokeswoman in an emailed assertion on Friday. “Imposing everlasting worth controls is an unprecedented and harmful overreach by the federal government and can restrict the choices small companies depend on to compete in an more and more aggressive market.”

In Could 2020, the New York Metropolis Council handed a legislation that restricted charges charged by third-party meals supply providers throughout states of emergency. Throughout these intervals, the providers might cost solely as much as 15% per order for offering supply providers, and not more than a 5% price per order for different forms of costs, like bank card processing and advertising. The legislation has been prolonged repeatedly amid the continuing coronavirus pandemic. 

Final 12 months, San Francisco, Seattle and Washington DC additionally handed emergency orders requiring supply apps to cap restaurant charges at 15% to twenty%.

The workplace for New York Metropolis Mayor Invoice de Blasio did not instantly reply to a request for remark.

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