DoorDash continues legal battle with retrial

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DoorDash has filed a federal lawsuit against New York City, arguing that its law that requires food delivery services to share consumer data with restaurants violates privacy and gives restaurants an unfair advantage.

As Reuters reported on Wednesday, September 15, the lawsuit comes six days after DoorDash, Grubhub and Uber Eats sued the city over a different law, which caps the fees delivery companies charge restaurants.

“The law puts consumers first,” Nicholas Paolucci, spokesperson for the city’s legal department, told Reuters. “It gives them control over their information when they place orders through these apps.”

Since the start of the COVID pandemic, New York has taken steps to help restaurants that needed delivery services to make up for lost in-person meals, but annoyed at having to pay application fees of up to 30%.

Read more: Grubhub, DoorDash, Uber Eats sue NYC fee cap law

In May 2020, New York instituted a cap on these fees with a measure that limits food delivery commissions to 15% for delivery services, 5% for add-ons such as marketing, and 3% for food delivery fees. transaction. This law became permanent earlier this year. The companies say the caps cost them hundreds of millions of dollars in revenue until July.

In the latest lawsuit, DoorDash said New York showed “naked animosity” by requiring food delivery companies to hand over customer names, phone numbers, email addresses and addresses to restaurants. , according to Reuters.

The delivery app said the move allows restaurants to “take a free ride” on data they would never ask diners in person, in a “shocking and pervasive invasion of consumer privacy.” Additionally, the data could put “most vulnerable populations” at risk if mismanaged or shared with immigration officials or hate groups, the company said.

This lawsuit is the latest battle in a larger legal war between delivery services and local governments. The lawsuits go both ways: As PYMNTS reported last month, the city of Chicago sued DoorDash and Grubhub for what it called “deceptive and unfair” business practices.

Read more: City of Chicago files lawsuit against Grubhub, DoorDash

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NEW PYMNTS DATA: TODAY’S SELF-SERVICE PURCHASE JOURNEY – SEPTEMBER 2021

On: Eighty percent of consumers want to use non-traditional payment options like self-service, but only 35 percent were able to use them for their most recent purchases. Today’s Self-Service Shopping Journey, a PYMNTS and Toshiba Collaboration, analyzes more than 2,500 responses to find out how merchants can address availability and perception issues to meet demand for self-service kiosks.


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