A lawsuit says ordering and delivery platforms including Grubhub, DoorDash and Uber Eats levy charges beyond what New York City law allows
A company behind a Manhattan bakery has filed a proposed class-action lawsuit against major third-party ordering and delivery platforms, including Grubhub Inc., DoorDash Inc. and Uber Eats, saying they have billed it and other food businesses more than allowed by New York City law.
In the lawsuit, Micheli & Shel, the company that operates the Michaeli Bakery on the Lower East Side, says the platforms have routinely levied fees beyond the city-imposed caps that were put into place last year as. The caps limit the charges to 15% for delivery and 5% for other fees, based on a customer’s order.
It is “a blatant violation of the law,” said Lee N. Jacobs, an attorney who represents Micheli & Shel. He said other businesses plan to join the suit if it becomes a class action. The case was filed earlier this week in federal court in Manhattan. Grubhub said, “We look forward to responding to these baseless allegations.” DoorDash said it “has always supported restaurants, and claims to the contrary are simply wrong.”To Read the Full Story
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