DoorDash, Grubhub, Uber Eats sue NYC over price caps aimed at protecting restaurants during pandemic – Fresno, California

Fresno, California 2021-09-10 10:44:14 –

Three of the country’s largest food delivery companies are suing New York City beyond the price limits set during the pandemic to protect restaurants devastated by the forced closure of the cafeteria.

According to the lawsuit, vaccinations have increased indoor meals and the city continues to increase these limits, even though businesses cost millions of dollars during the summer.

Related: Grubhub, DoorDash misleads restaurants, customers, especially during COVID-19, Chicago says in suits

In a proceeding filed late Thursday, the Federal District Court for the Southern District of New York, DoorDash, Grubhub, and Uber Eats call the rate cap a government overkill. After investing millions of dollars in bailouts for these businesses, the two companies said they “helped bring restaurants to the surface and keep hiring workers in the food industry.”

They have applied for an injunction that prevents the city from enforcing a potentially permanent tariff cap adopted in August. Both companies are seeking unspecified monetary damages in jury trials.

Delivery platforms that have experienced explosive growth during the pandemic are increasingly clashing with local governments that say restaurants and consumers are suffering from exorbitant fees and high costs.

Related: Would you like to spend more on DoorDash and UberEats?This fee may be the reason

Last month, Chicago officials accused DoorDash and Grubhub of charging high fees and other deceptive practices that harmed restaurants and their customers in the city. Shipping companies were previously targeted by legal authorities in other cities and states, but these efforts targeted specific policies compared to Chicago’s attacks on many elements of the company’s operations. The two companies called the Chicago proceedings groundless.

A district attorney in San Francisco has accused the delivery company of violating California law by classifying the driver as a contractor. Washington, DC, and reached a settlement with DoorDash in 2019 after claiming that the company misunderstood customers about the amount of drivers it received on chips.

In July, the Massachusetts Attorney General’s office filed a proceeding accusing Grubhub of illegally charging restaurants for high fees during a pandemic. The state has capped most tariffs in 2020.

DoorDash, Grubhub and Uber Eats allege in the proceedings that the city of New York first set a price cap in May 2020 in response to the COVID-19 pandemic. Both companies believed that the cap would be temporary. The city has limited the rate at which third-party platforms can charge restaurants 15% of online orders for delivery services and 5% of all other services, including marketing.

Related: Some restaurants require customers to skip distribution apps such as Grubhub and UberEats

In the proceedings, the two companies allege that New York has continuously postponed the expiration date of the law, making it permanent because it has no date at all. They also claim that the law cost “hundreds of millions of dollars” by July.

“The ordinance is unconstitutional, among other things, because it prevents freely negotiated contracts between platforms and restaurants by changing and directing the economic conditions in which dynamic industries operate,” the proceedings said. ..

The featured video is from a previous report.

Copyright © 2021 By AP communication. all rights reserved.

DoorDash, Grubhub, Uber Eats sue NYC over price caps aimed at protecting restaurants during pandemic Source link DoorDash, Grubhub, Uber Eats sue NYC over price caps aimed at protecting restaurants during pandemic

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