DoorDash, Grubhub, Uber Eats settle NYC delivery fee cap lawsuit as city plans law revision

DoorDash, Grubhub, Uber Eats settle NYC delivery fee cap lawsuit as city plans law revision

In a significant development for the online food delivery industry, DoorDash, Grubhub, and Uber Eats have reached a settlement in a lawsuit filed by the City of New York. The lawsuit aimed to cap delivery fees, arguing that these fees were excessive and unfairly burdening consumers and small businesses. The settlement, announced on June 5, 2025, marks a pivotal moment in the ongoing debate over the regulation of third-party food delivery services.

The settlement agreement, which remains confidential, is expected to include provisions that address the concerns raised by the city. According to sources close to the negotiations, the agreement will likely include caps on delivery fees, enhanced transparency requirements, and measures to ensure fair treatment of independent restaurants and delivery workers. The specifics of the settlement are yet to be disclosed, but it is anticipated that the agreement will provide a framework for a more balanced and regulated food delivery ecosystem in New York City.

In response to the settlement, the City of New York has announced plans to revise its existing laws to better address the challenges faced by both consumers and businesses in the online food delivery sector. The new legislation, expected to be introduced in the coming months, will aim to provide greater clarity and protection for all parties involved. This includes stricter oversight of third-party delivery platforms, increased accountability for restaurants, and measures to ensure fair pricing and service quality.

The settlement and upcoming legislation come amid broader regulatory efforts aimed at addressing the rapid growth and impact of the online food delivery industry. Nevada, for instance, has recently passed Assembly Bill 116, which introduces new rules to protect restaurants against unauthorized listings on third-party delivery services [1]. This law, set to take effect on January 1, 2026, requires restaurants to possess valid business licenses and imposes daily penalties on delivery platforms for non-compliant listings.

The developments in New York City and Nevada highlight the evolving regulatory landscape for the food delivery sector. As these platforms continue to grow in influence and market share, policymakers are increasingly focused on ensuring that they operate in a manner that is fair, transparent, and beneficial to all stakeholders. The settlement and upcoming legislation in New York City are expected to set a precedent for future regulatory efforts across the country.

References:
[1] https://coyotecountrylv.com/2025/06/03/nevada-law-cracks-down-on-unauthorized-food-delivery-listings-with-500-daily-penalties/