Doordash sues NYC over rights to customer data

Doordash is suing New York City over a new law that requires delivery companies to share customer data with restaurants.

What’s happening

The lawsuit filed Wednesday is the latest in a string of legal tussles between delivery companies and local governments, reflecting unease over the phenomenal growth of delivery and its impact on restaurants.

Last week, Doordash, Grubhub and Uber Eats sued New York over a separate bill that caps fees delivery companies can charge to restaurants. Doordash and Grubhub are also suing San Francisco over fee caps adopted there.

What Doordash says

In its new lawsuit, Doordash says an ordinance passed by the New York City Council in late July is unconstitutional and violates customer privacy. Under the law, delivery companies must share data collected on customers — including names, addresses, phone numbers and order contents — with any restaurant that requests that information. Customers can opt out and keep their information private, but only on an orderby-order basis.

“In an era of heightened concerns about data privacy and identity theft, this compelled disclosure is a shocking and invasive intrusion of consumers’ privacy,” the San Francisco company said in its court filing.

What restaurants want

But many restaurants — fed up with delivery fees and lack of transparency — supported the bill. The NYC Hospitality Alliance, which represents 25,000 bars and restaurants in New York, says the bill ensures that restaurants can market directly to their customers. The law also makes it easier for restaurants to leave delivery platforms without losing access to their customers.

MARK LENNIHAN/AP 2021 Doordash, Grubhub and Uber Eats sued New York over a separate bill capping fees delivery companies can charge restaurants. Doordash and Grubhub are also suing San Francisco over its fee caps.