DoorDash turns into a sue chef
DoorDash is suing New York City over a controversial law enacted this summer that forces food delivery app companies to share customer data with restaurants, according to a complaint filed Wednesday.
DoorDash and other delivery apps, including Grubhub and Uber Eats, fought against the bill before it was approved by the City Council on July 29, arguing that it raised serious consumer privacy concerns.
The law requires app companies to share customers’ names, phone numbers, delivery and mailing addresses and purchase histories with restaurants that request this data. But DoorDash argues that the law “does not mandate any data-security requirements once the customer data is transferred to restaurants,” according to the complaint filed in Manhattan federal court.
Some restaurants and consumer groups also spoke out against the law, citing privacy concerns.
The goal of the measure, proponents on the City Council argued, was to give restaurants direct access to their customers. It’s not fair, they contend, for an app to take an order for a burger and fries at the corner diner, match that order with a delivery person and arrange for the meal to be delivered to the customer’s door — all without the restaurant ever knowing who its patron was.
The sponsor of the legislation, Keith Powers (D-Manhattan), said DoorDash should drop its lawsuit.
“After such a devastating year for our city’s restaurant industry, this precedentsetting law gives much needed relief to eateries to have better access to customer data and provides strong privacy protections,” Powers said in a statement to The Post.
The DoorDash complaint is the latest salvo between the delivery apps and the City Council. Under a law passed Aug. 26, the app services would be limited in the amount they can charge restaurants to 15 percent of food orders for delivery services, 5 percent for advertising and other miscellaneous services and 3 percent for credit card processing fees.
Mayor de Blasio has 30 days from the bill’s passage to sign the legislation, which would take effect 120 days after becoming law.