(Reuters) – DoorDash Inc. sued New York City on Wednesday for a new law requiring food delivery companies to share customer data with restaurants, saying it violates customer privacy and allows restaurants to compete unfairly.
The trial is the latest battle in a series of legal clashes between food delivery apps and cities.
It was filed in federal court in Manhattan six days after DoorDash, Grubhub Inc. and Uber Eats sued the United States' most populous city after a separate lawsuit. fees that delivery companies charge for restaurants.
"Laws put consumers first," said Nicholas Paolucci, a spokesman for the city's law department, in an email. "It gives them control over their information when they place orders through these apps."
New York City has been trying since the coronavirus pandemic began to help restaurants that had complained about food delivery charges as high as 30%, but that became more dependent on delivery as canteens closed or limited capacity.
About 90,000 restaurants across the country have closed temporarily or permanently during the pandemic, which costs 1
In Wednesday's lawsuit, San Francisco-based DoorDash said the city exhibited "naked animus" by requiring food vendor applications to provide customers' names, phone numbers, email addresses and restaurant delivery addresses.
DoorDash said this would allow restaurants to "ride freely" on data they would not demand from personal diners, in a "shocking and invasive invasion of consumer privacy."
It also said "more vulnerable populations, especially undoc measured customers" could be harmed if data was abused and shared with immigration authorities or hate groups.
The hoods cost DoorDash, Grubhub and Uber Eats hundreds of millions of dollars in revenue through July, the companies said.
DoorDash and Grubhub sued San Francisco in July for Chicago sued these companies last month, saying their deceptive practices mislead customers and damage restaurants. DoorDash and Grubhub rejected Chicago's claims.
District Court, Southern District of New York.