DoorDash Inc. has filed a lawsuit against New York City, challenging a newly implemented law that mandates third-party food delivery services to share customer information with restaurants. The law requires delivery platforms to provide restaurants with monthly data on customers who place orders, including their names, phone numbers, and email addresses. DoorDash is calling the measure a “shocking and invasive intrusion of consumers’ privacy.”
In the complaint filed on Wednesday in Manhattan federal court, DoorDash argues that the law undermines consumer privacy and provides restaurants with little-to-no limitations on how they can use the sensitive data. The company claims that restaurants are not required to secure the information they receive, leaving customers vulnerable to potential misuse.
The lawsuit comes just days after DoorDash, alongside Grubhub Inc. and Uber Eats, filed another legal challenge over a separate New York City ordinance that limits food delivery services’ commissions to a 15% cap. The companies have argued that this measure constitutes unconstitutional government overreach that harms their business models.
The new data-sharing requirement is part of a broader series of bills aimed at regulating the booming food delivery industry, which saw explosive growth during the COVID-19 pandemic as dining rooms were forced to close. While the intent behind the regulation may have been to support restaurants, DoorDash contends that the law does more harm than good.
In its lawsuit, the company emphasized the risks associated with sharing personal data, stressing that consumers trust platforms like DoorDash to safeguard their information—trust that may be compromised by the ordinance. The company argues that diners who order food online should not be expected to disclose the same type of personal information they would not be required to provide when dining in person at a restaurant.
DoorDash is seeking a court order to prevent the law from taking effect, arguing that it was designed to hurt DoorDash’s profitability by allowing restaurants to gain access to valuable customer data. The company also claims that the law would enable restaurants to use this data to directly compete with DoorDash, potentially reducing its resources, earnings opportunities for delivery couriers, and the variety of choices available to New York City customers.
The city’s Law Department has yet to respond to the lawsuit, and it remains to be seen how the court will rule on the matter. The case is filed under DoorDash Inc. v. City of New York, 21-cv-7695, U.S. District Court, Southern District of New York.
