| DoorDash and
Uber Eats Sued NYC 15% Cap on Commissions
Now City Moves To Dismiss
By Matthew
Russell Lee, Patreon
BBC
- Guardian
UK - Honduras
- ESPN
SDNY COURTHOUSE,
Dec 28 – DoorDash, GrubHub,
Seamless, Postmates and Uber
Eats have sued New York City,
saying that the now permanent
commission cap at 15% is
unconstitutional.
On November 22, U.S. District
Court for the Southern
District of New York Judge
Gregory H. Woods held a
proceeding. Inner City Press
covered it.
The City's
lawyers argue that the
contracts allegedly impaired
were and are "at will," and
the SEC filings show that the
plaintiffs knew that they were
in an evolving and
increasingly regulated
industry.
The City says it
is capping fees in order to
keep neighborhood restaurants
vibrant.
Judge Woods
has stayed discovery, nothing
that "the resolution of
Defendant's motion [to
dismiss] will inform the scope
of future discovery."
In late December
the City moved to dismiss,
arguing that the plaintiffs'
regulatory takens claim fails
and, on December 28, annexing
Grubhub's IPO documents,
Doordash' prospectus and Uber
Eats' Form 10-K. Watch this
site.
The case is
DoorDash, Inc. et al v. City
Of New York, 21-cv-7564
(Woods)
***
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