Food delivery apps like Doordash, Grubhub and Uber Eats are all coming together to sue New York City!
Two weeks after the City Council voted to permanently cap the fees food apps can charge restaurants at 15%, food app companies decided to sue the city. The lawsuit was filed on Thursday in Manhattan federal court. The lawsuit is looking to prevent our city officials from enforcing the cap. These same food app companies filed something similar in San Francisco this past July.
The companies claim in the suit that New York City's fee cap has lost them hundreds of million dollars combined. Uber Eats told the Wall Street Journal in August that is lost $60 million in NYC due to this.
The council members voted to permanently cap the fees that these food delivery apps were charging restaurants which then was committed by Mayor de Blasio to sign into law.