SAN FRANCISCO (Legal Newsline) - Doordash, Inc. and GrubHub, Inc. filed a federal complaint on July 16 in the U.S. District Court for the Northern District of California against the City and County of San Francisco for various violations of the U.S. Constitution.
Doordash and GrubHub allege that the City of San Francisco has taken the unprecedented step of imposing permanent price controls on a private and highly competitive industry — the facilitation of food ordering and delivery through third-party platforms — by enacting an ordinance that prevents restaurants and third-party platforms from freely negotiating the price that platforms may charge restaurants for their services.
Doordash and GrubHub allege that this is harmful and unnecessary because restaurants currently have an array of options for delivery, including options well below the price control, and the legislation will likely lead to reduced choice for restaurants, higher prices for consumers, and fewer delivery opportunities for couriers.
Doordash and GrubHub seek for the court to declare the ordinance violates the U.S. and California constitutions, in addition to compensation, damages, attorney's fees and cost of suit. Doordash and GrubHub are represented by Joshua S. Lipshutz.
U.S. District Court for the Northern District of California case number 3:21-cv-05502