Uber Eats, DoorDash sue NYC

DoorDash, Uber eats, and Grubhub has jointly filed #lawsuits against New York City, challenging two regulations that impact the food delivery industry. The first regulation is a new law that enforces #minimumwages for food-delivery workers. In contrast, the second regulation imposes a permanent cap on the commissions these apps can charge restaurants.

The minimum-wage law, which goes into effect on July 12, mandates that the companies pay their workers either approximately 50 cents per minute on a trip or a minimum of $17.96 per hour for their active time on the app, excluding tips; the latter works out to around 30 cents a minute. The companies argue that these #payrates could exceed the minimum wages in other industries. They also raise concerns about compensating workers for online time, given the nature of their work across multiple apps and the potential for overlapping hours.

Apart from the minimum-wage law, the food delivery apps are also contesting a permanent #feecap on commissions charged to restaurants. This cap restricts the amount these apps can charge restaurants for their services. The companies argue that the fee cap is detrimental, interfering with negotiated contracts and potentially leading to renegotiations, reduced marketing efforts, and increased consumer fees.

These lawsuits underscore the ongoing clash between the food delivery apps and the city regarding industry regulations. The companies claim that the regulations impede their operations and ability to offer #flexibleopportunities for gig workers. Conversely, proponents of the rules argue that they seek to bring fairness to the industry and support struggling businesses.

The outcomes of these legal battles will have significant implications for the food delivery industry and the relationship between these apps and local regulators in New York City and potentially beyond.

Uber Technologies Inc, DoorDash Inc and other app-based food delivery companies announced Thursday that they filed a lawsuit aimed at overturning New York City’s new law that sets a minimum wage for drivers. 🙄

The new law, which takes effect on Jan. 1, 2023, requires the companies to pay their drivers a minimum wage and provide them with additional benefits and insurance. However, the companies claim that the law will have a serious negative impact on their business model and could result in them having to cut back on the number of drivers or increase the cost of their services. 😕

The companies claim in the lawsuit that the law violates the U.S. Constitution’s right to freedom of commerce and interferes with normal competition in the marketplace. They also argue that the law will limit drivers’ flexibility and freedom to choose their jobs.

The New York City government, for its part, says the law is designed to protect the rights of drivers and ensure that they receive fair wages and benefits. They argue that the app companies have been exploiting drivers and making higher profits with low wages and unstable working conditions. 😵

The lawsuit will be further debated and contested in future court hearings. Regardless of the ultimate outcome, this lawsuit will garner widespread attention and have important implications for similar labor rights issues.