The companies have sought an injunction that would prevent the city from enforcing a cap on what fees they can charge restaurants listed on their app.
, the case was filed in a New York federal court late on Thursday and it argues that the capping of fees is harmful and constitutes government overreach.
The food delivery companies are seeking an injunction that would prevent the city from continuing to enforce the law along with unspecified monetary damages and a jury trial.massive growth during the pandemic—argue that New York’s permanent fee caps bear “no relationship to any public-health emergency” as restaurants are allowed to operate their dining rooms again.
The food delivery platforms can charge as high as a 30% commission per order from restaurants and the New York City legislation caps that at no more than 23%—15% for delivery, 5% for listing and advertising and 3% for credit-card processing fees.
Bloomberg Second Measure, Doordash made up 36% of food delivery sales in the city in July while GrubHub and UberEats’ share stood at 34% and 29% respectively.
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