After the passage of a New York City law capping the fees food delivery apps can charge, Grubhub, DoorDash and Uber Eats are suing the city, seeking an injunction and monetary damages for what they say has been hundreds of millions of dollars in lost fees.
The companies accused the law of setting "a dangerous precedent" and interfering with contracts. Similar caps have been imposed in San Francisco, and have been considered statewide in California, amid concerns among lawmakers that food delivery apps engaged in price gouging during the pandemic.
The city of Chicago, meanwhile, is suing Grubhub and DoorDash, accusing the companies of "deceptive" practices relating to fees, inflated prices and drivers' tips.