DoorDash, Uber Eats and Grubhub challenge NYC on the limits of restaurant fees

DoorDash, Uber Eats and Grubhub challenge New York City can afford to rent a restaurant. The city brought hats for a short time in June last year to support the restaurant while the dining rooms were closed to prevent damage to COVID-19. NYC officials set limits in August.

Currently, shipable applications can charge restaurants up to 23% on each order, which includes three installments of credit card payment options. Otherwise, they could have imposed a fine of up to 35 percent. In April, DoorDash initiated the system who pay up to 30 percent in commissions.

The companies are appearing in their U.S. District Court case , sent by , that the hat does not comply with the law and is similar to what the government is doing that could harm businesses. They want a law to ban the city from forcing them to pay taxes and damages and to prosecute cases. “If they are not careful, the law becomes a dangerous example,” he said.

Councilor Mark Gjonaj, chairman of the city’s Small Business Committee, said NYC would keep the caps and continue to oversee other delivery activities. “These laws just want to bring justice in a way that is often lacking,” he said Wall Street Journal. Engadget has teamed up with Uber Eats to provide feedback.

“Grubhub has worked hard during the epidemic to support restaurants in New York City and across the country,” a company spokesman told Engadget in a statement. “Despite our best efforts, City Council has recently passed a law that has never been implemented and is not in line with food security laws. Reproductive companies. “Unfortunately, we are left with nothing to do but commit crimes.”

Grubhub also says NYC law should not only destroy programs, but also restaurants and consumers. It shows that the fees they charge will lead to higher prices and lower shipping for carriers, as well as the opportunity to choose dining services from supplier platforms.

“The New York City Council has issued damaging, unnecessary, and illegal logs that do not give us a choice but to resolve the matter in court, as we did in San Francisco,” a DoorDash spokesman told Engadget. “Not only is pricing a violation of US and New York laws, but it is also destroying the restaurants that the City wants to help.”

In June, the Board of Supervisors in San Francisco pay the full cost of the 15% program, becoming the first city in the US to do so. However, Mayor of London Breed signing the bill, stating that “it was unnecessarily written to reduce third-party businesses.” DoorDash and Grubhub San Francisco to ban the measure too.

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