DoorDash, GrubHub, Uber Sue NYC - What You Need To Know - DoorDash (NASDAQ:DASH), Uber Technologies (NYSE:UBER)

DoorDash Inc DASH, GrubHub Inc GRUB, and Uber Technologies UBER Eats have sued New York city for installing permanent fee caps on emergency delivery during the pandemic, CNBC reports.
The companies alleged the City Council's cap of 23%, which translated into a 15% fee cap for delivery and 5% for app listing, and 3% for credit-card processing fees, had cost them hundreds of millions of dollars, the Wall Street Journal reports.
The cap implied that GrubHub's commission would be limited to 8%. Previously the apps could charge restaurants commissions up to 30% per order.
A permanent cap will force the companies to revise contracts with restaurants, reduce marketing and raise fees for consumers, alleged the trio.
The restaurants were free to ditch their services if the prices bit them added the companies.
The suit alleged that competitors like Alphabet Inc GOOG GOOGL and Yelp Inc's YELP have been exempt from the capping.
The companies sought an injunction to prevent the law from being enforced, rendering the bill unconstitutional and seeking damages from the city.
DoorDash commanded 36% of July sales in the city, GrubHub 34%, and Uber Eats and Postmates a joint 30%, as per a Reuters report.
DoorDash and GrubHub filed a similar lawsuit against San Francisco for fixing a permanent 15% delivery fee cap.
Price Action: UBER shares traded lower by 0.63% at $40.10 on the last check Friday.

DoorDash, GrubHub, Uber Sue NYC - What You Need To Know