DoorDash, Grubhub, Uber Eats settle with New York City over fee caps

NEW YORK (Reuters) -DoorDash , Grubhub and Uber Eats have settled a lawsuit against New York City over a law capping how much they can charge restaurants for delivering meals.

The proposed settlement anticipates changes to the law, and was described in a Wednesday filing in the federal court in Manhattan. DoorDash, Grubhub and Uber Eats agreed to dismiss their lawsuit with prejudice.

Lawyers for the delivery services and New York City did not immediately respond to requests for comment.

New York City capped delivery charges in May 2020 as a response to the COVID-19 pandemic, to shore up a restaurant industry beset by closures and upset with fees as high as 30%.

The law capped charges at 15% for food orders and 5% for advertising and other services. It was intended to be temporary, but became permanent in August 2021.

DoorDash, Grubhub and Uber Eats sued the next month, saying the law violated the U.S. and state constitutions by depriving them of their right to contract with restaurants, and forcing them to give up hundreds of millions of dollars in revenue.

(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler and Jamie Freed)