Thursday, October 21, 2021

Deliveroo and Uber sue New York over delivery fees

Must read

By Kat Dennings

BBC News, New York

Deliveroo and Uber are suing the New York City Planning Commission

Delivery startups Deliveroo and Uber are suing the New York City Planning Commission over the placing of caps on the time eateries can charge delivery charges.

The companies want a judge to overturn what they claim is the start of an “aggressive campaign” by the administration to close down them.

They say the move would restrict competition from the tech-driven “on-demand” food industry.

The app-based companies say they help the expansion of small businesses.

The City Planning Commission of New York set the cap at seven hours a day after complaints from large restaurants who complained of unfair competition.

But the online restaurant in a court filing says it is not a cap but a curb.

It said there was “an insidious and co-ordinated assault” on the companies by the city.

Uber and Deliveroo say the city is trying to shut them down by making it difficult for them to charge a delivery fee more than £2.95 ($4.80, Dh19.05) per order and £2.50 ($3.50, Dh10.50) if the delivery is not completed.

“The City’s attempt to cap delivery rates represents a misguided attempt to selectively protect small businesses and their owners,” the companies said in a statement.

“The City is interfering with legitimate business practices in a highly concentrated and inefficient way.”

Deliveroo called the cap a “pretend rate cap” that does not reflect the actual cost of delivery.

And Uber said its fees have been lower than other carriers since launching in New York last year.

In the meantime, the companies say, riders are being negatively affected.

The court papers also claim that fare data collected by the city is misleading because it fails to show who is actually delivering the food.

More articles

Latest article