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DoorDash, Grubhub, and Uber Eats settle with New York City over delivery fee cap, limiting delivery fees to 15% and other service fees to 5%.
ByAinvest
Wednesday, Jun 4, 2025 7:28 pm ET1min read
DoorDash, Grubhub, and Uber Eats settle with New York City over delivery fee cap, limiting delivery fees to 15% and other service fees to 5%.
New York, NY — DoorDash, Grubhub, and Uber Eats have reached a settlement with New York City over a law capping the fees they can charge restaurants for delivering meals. The proposed settlement anticipates changes to the law and was filed in federal court in Manhattan on June 4, 2025 [1].The lawsuit, which had been pending, was dismissed with prejudice as part of the settlement agreement. The companies agreed to limit their delivery fees to 15% and other service fees to 5% [1].
The settlement is a significant development in the ongoing debate over the impact of third-party delivery services on restaurants and their costs. New York City's law, which aimed to cap these fees, has been a point of contention between the city and the delivery services. This settlement suggests a compromise, with the companies agreeing to reduce their fees in exchange for the dismissal of the lawsuit.
The agreement comes as a relief for restaurants in New York City, who have been advocating for lower delivery fees to mitigate their operational costs. The companies, however, have not publicly disclosed the financial impact of the settlement on their operations.
The settlement is expected to set a precedent for other cities and states considering similar regulations. It underscores the importance of dialogue and compromise in addressing the complex dynamics between technology companies, regulators, and local businesses.
References:
[1] Reuters. (2025, June 4). DoorDash, Grubhub, Uber Eats settle with New York City over fee caps. Retrieved from https://www.reuters.com/sustainability/boards-policy-regulation/doordash-grubhub-uber-eats-settle-with-new-york-city-over-fee-caps-2025-06-04/
[2] Marketscreener. (2025, June 4). DoorDash, Grubhub, Uber Eats settle with New York City over fee caps. Retrieved from https://www.marketscreener.com/quote/stock/UBER-TECHNOLOGIES-INC-57860975/news/DoorDash-Grubhub-Uber-Eats-settle-with-New-York-City-over-fee-caps-50160887/
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