Meal delivery companies plan to sue NYC
They want to set the margins without the maximum set by city
Grubhub, Dodash, and Uber Eats are suing New York City over plans by the city to make current meal delivery regulations permanent, including a ceiling on commissions that may be charged.
The three largest meal delivery companies submitted documents to the court in New York, stating that the maximum commission is harmful and that the government is acting outside the bounds. A committee ceiling has caused the meal delivery companies to lose hundreds of millions of dollars in revenue in July.
A permanent ceiling will mean that meal delivery companies will have to revise contracts with restaurants, reduce advertising in the city and increase consumer fees.
The meal deliverers therefore want the rules around a maximum commission to be reversed.
As a surprise, the resistance does not come. CEO Jitse Groen of Just Eat Takeaway, now also the owner of Grubhub, said earlier to oppose the plans.