DoorDash, Grubhub, Uber Eats sue NYC over price caps

By MICHELLE CHAPMAN AP Business Writer

Three of the nation's largest food delivery companies are suing New York City over a limit on fees it put in place during the pandemic to protect restaurants devastated by the forced closure of their dining rooms.

The city has continued to extend those caps even as vaccinations allow more indoor dining, costing the companies millions of dollars over the summer, according to the lawsuit. In the suit filed late Thursday the U.S. District Court for the Southern District of New York, DoorDash, Grubhub and Uber Eats call the fee caps government overreach.

The delivery platforms that experienced explosive growth during the pandemic are increasingly clashing with local governments who say restaurants and consumers are getting hit with exorbitant fees and high costs.

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