DoorDash files a 2nd lawsuit against NYC as the city prioritizes restaurants over delivery apps
![_New lawsuit delivery to: City Hall [Ivan Pantic via GettyImages]_](https://cdn.robinhood.com/static_content/mwphzyq69oso/en-US/assets/files/5Qbzg9rgxdHXXLslqZvlnx_1_GettyImages-1267689602.jpg)
Just got served… And not in a yummy way. DoorDash sued NYC over a law that requires food-delivery apps to give restaurants more data about customers ordering dumplings at 10pm. That would potentially enable your go-to pizza spot to deliver to you directly (hold the Dash). It’s the latest in a food feud simmering between delivery giants and NYC. Quick recap:
- At the start of the pandemic, NYC capped the fees that DoorDash, Uber Eats, and Grubhub can charge restaurants at 15% — they were up to 30% — to keep your local spots alive.
- This summer, the City Council made those caps permanent.
- Early this week: DoorDash, Uber Eats, and Grubhub sued NYC over the fee limits.
- Now: DoorDash sued NYC again over a law that requires delivery platforms share customers’ contact info with restaurants.
The profits are getting cold… Food delivery companies struggled to deliver profits even before the pandemic. Now, their fee-skimming biz model is under fire nationwide. DoorDash and Grubhub were sued by Chicago last month for using deceptive fees, and 70 of the 100+ pandemic-era fee caps across the country are still in place.
Cost effective =/= politically effective… In many cities, business isn’t just financial — it’s political. NYC loves restaurants because they employ thousands of full-time workers, promote consumer spending, and generate tax revenue. NYC doesn’t love delivery platforms’ treatment of gig workers or its funneling of profits to distant corporate HQs. Since DoorDash and Uber are failing politically in NY, they need help from the courts to keep their businesses cooking.