Online food ordering company DoorDash Inc. has filed a lawsuit against New York City over a new law requiring food delivery companies to share customer data with restaurants, according to a report released Tuesday. October 5 by Reuters. The food delivery company argued that city law violates the privacy of customers and provides a level playing field for restaurants, according to the article.
The lawsuit is the latest round in the controversial battle between food delivery service providers and cities. Last month, Grubhub, DoorDash and Uber Eats filed a lawsuit against New York City for setting permanent fee caps, which limit the portion of a sale food delivery services charge restaurants to 20%. in total, including commission, transaction fees, and marketing, as PYMNTS reported. The caps began as a short-term measure when delivery sales increased in the early months of the pandemic, as restaurant dining rooms were closed.
Read more: DoorDash continues New York legal battle with retrial
The most recent lawsuit is DoorDash’s second against New York last week.
In the wake of last month’s lawsuit, the New York City Council’s Consumer and Business Licensing Committee adopted seven measures to improve working conditions for food delivery drivers. Among the measures approved by the Council were setting distance limits, requiring delivery services to disclose the tip amount accruing to the driver and establishing a minimum payment per trip.
More details: NYC Pass Delivery Driver Protections
In contrast to the take-out model of DoorDash, Grubhub and Uber Eats, some restaurants are seeking help from technology solution providers to set up their own order channels and hire their own delivery staff, as reported by PYMNTS. . With this approach, restaurants would be responsible for the fixed monthly service charges instead of the expensive portions per order from third-party aggregators, which can be as high as 30%. These solution providers, such as Lunchbox, Traiilo and BentoBox, also allow restaurants to interact directly with customers.
See also: Restaurants look for internal alternatives to third-party aggregators