Posted 9/19/2023, 9:24:00 PM
Judge Allows Delivery Apps to Sue NYC Over Fee Caps
- Federal judge says DoorDash, Grubhub, Uber Eats can sue NYC over fee caps on food delivery services.
- Judge says companies adequately alleged the law violates U.S. and NY constitutions by limiting right to contract.
- Judge says law's purpose appears to be economic protectionism for NYC restaurants over out-of-state companies.
- NYC said law aims to prevent "devastation" from excessive fees forcing restaurant staff cuts.
- Plaintiffs say caps will require higher delivery fees, raising costs and lowering revenue.
- San Francisco has also enacted permanent commission caps on delivery services.