Dordash, Uber It’s and Grubov are suing New York City They can charge the restaurant. The city brought in caps on a temporary basis in June last year to help restaurants When the dining room was closed to prevent the spread of Covid-1 of. NYC officials fixed the limit in August.
Currently, delivery apps can charge restaurants up to 23 percent per order, including three percent to cover credit card processing fees. Otherwise, they could charge up to 35 percent. In April, Dordash Has introduced a tiered system Which charges up to 30 percent in commissions.
The companies sued them in U.S. District Court , Which was posted by , That cap is unconstitutional and equivalent to government excesses that will harm business. They are seeking a ban on compensation and jury trials as well as fee limits to the city. They argued, “Unelected Left, the ordinance sets a dangerous precedent.”
Councilman Mark Jonas, chairman of the city’s small business committee, said NYC will maintain caps and continue to monitor other delivery apps. “Laws only want to bring justice to a system that often lacks it,” he said. The Wall Street Journal. Engadget contacted Uber It’s for comment.
A spokesman for the company told Engedgate in a statement: “Grubov worked hard during the epidemic. Delivery industry. Price control increases delivery fees for consumers, and therefore reduces orders for both restaurants and couriers. Although Grove is willing to be involved with the City Council, unfortunately we have no choice but to take legal action. ”
Grubhub also argues that the NYC ordinance will harm not only the app, but restaurants and consumers, suggesting that fee caps would be higher prices and lower choices for couriers as well as less choice for service to restaurants from the delivery platform.
“The New York City Council has passed harmful, unnecessary and unconstitutional price controls as we have done in San Francisco. We have no choice but to resolve this issue in court.” “Not only do price controls violate the constitutions of the United States and New York, they will probably also damage restaurants in the city.”
In June, the San Francisco Board of Supervisors By permanently limiting delivery app fees to 15 percent, it is becoming the first city in the United States to do so. But the mayor is London Breed In order to sign the bill, it claims that it is “unnecessarily directive to limit the business models of third-party organizations.” Dordash and Grubov San Francisco will also block the measure.
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