Food-delivery companies DoorDash Inc, Grubhub Inc and Uber Eats have sued New York City over a legislation to license food-delivery apps and to permanently cap commissions they can charge restaurants.
The New York City Council approved in August a legislation which limits the amount that food-delivery companies can charge restaurants to use their platforms and requires them to obtain operating licenses that are valid for two years. The suit argues that the legislation is unconstitutional because"it interferes with freely negotiated contracts between platforms and restaurants by changing and dictating the economic terms on which a dynamic industry operates".
It seeks to limit the amount those companies can charge restaurants to 15per cent of food orders for delivery services and 5per cent for advertising and other non-delivery services.
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