The firms said this would reduce how often customers would order. The companies said that they may have to offset the cap by charging higher delivery fees directly to customers. They added that food-delivery apps had been "instrumental in keeping restaurants afloat and food industry workers employed" during the pandemic.īetween them, the companies also own Caviar, Seamless, and Postmates. In the lawsuit, the companies said that "this now-indefinite legislation bears no relationship to any public-health emergency, and qualifies as nothing more than unconstitutional, harmful, and unnecessary government overreach that should be struck down." Last month, the city voted to make this permanent, adding a 3% cap on transaction fees. The apps were only able to charge up to 15% per order for delivery fees and up to 5% for marketing contributions and other related fees. Last May, after the pandemic forced restaurants to close their dining rooms, the city passed temporary caps on how much third-party delivery apps could charge restaurants. The companies said that the cap on commissions could force them to raise prices for customers, and could reduce earnings for delivery drivers. The companies filed the suit in federal court on Thursday, and sought an injunction that would prevent the city from enforcing the legislation, alongside unspecified monetary damages, The Wall Street Journal first reported. See more stories on Insider's business page.ĭoorDash, Grubhub, and Uber Eats have sued New York City over legislation that limits the fees delivery apps can charge restaurants for their services. The apps said this could force them to charge customers more, and could reduce earnings for drivers. In August, the city made permanent a 15% cap for delivery fees and 5% for marketing fees. Pablo Cuadra/Getty ImagesĭoorDash, Grubhub, and Uber Eats sued New York City for capping fees they can charge restaurants. Food-delivery apps have sued New York City over legislation that caps the fees they can charge restaurants for their services.
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