The Oakland Press

DoorDash sues New York City over rights to customer data

- By Dee-Ann Durbin

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

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.

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 order-by-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. The company noted that in-person diners would never be asked to share the same informatio­n with restaurant­s.

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.

“DoorDash spends millions of dollars to take restaurant­s’ customers and withhold their informatio­n so they can control the market and extract more fees from small businesses,” said Andrew Rigie, the executive director of the alliance.

Delivery companies saw big sales gains over the last year as pandemic lockdowns closed restaurant dining rooms and more people ate at home. DoorDash booked a record 345 million orders in its mostrecent quarter, and its sales jumped 83% from the prior year to $1.24 billion.

 ?? ASSOCIATED PRESS FILE PHOTO ?? The DoorDash app on a smartphone in New York.
ASSOCIATED PRESS FILE PHOTO The DoorDash app on a smartphone in New York.

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