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 which, according to the companies, cost them millions of dollars over the summer.
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 companies say they were “instrumental in keeping restaurants afloat and food industry workers employed” after investing millions of dollars in relief for those businesses.
They are filing for an injunction that would prevent the city from enforcing an extension on the fee caps adopted in August.
The companies are seeking unspecified monetary damages as well as a jury trial.