A US judge said Wednesday that he will let an antitrust lawsuit against food delivery services Grubhub, Uber Eats and Postmates go forward. A group of customers accused them of raising the prices of the dishes by taking advantage of their dominance in the food delivery service during the COVID pandemic-19.
U.S. District Judge Lewis Kaplan in Manhattan said it was reasonable to infer that by requiring restaurants to accept non-price competition clauses from apps, they would have no choice but to raise prices, regardless of why. service customers order meals.
He also said that diners alleged that the more restrictive clauses of Grubhub and Uber Eats discouraged restaurants from using other platforms, despite their need to generate enough sales to stay afloat during the pandemic and offset low profit margins.
“The defendants’ motion to dismiss is denied in its entirety,” Kaplan said, according to Reuters.
Clients suing claim They found that priceless competition clauses prohibited restaurants from charging lower prices for dine-in or takeout, while Grubhub and Uber Eats also prohibited restaurants from charging less to customers who ordered on rival platforms.
They said the damage from inflated meal prices was made even worse by delivery fees of 5% to % charged to customers. diners and the 30% commission rates often charged to restaurants.
Grubhub said it was disappointed with the court’s decision and would continue to defend its food-related services.
Uber Eats and Postmates, both services owned by Uber, did not have commented on this case. Clients’ attorneys said they were pleased with the decision.
Food delivery companies’ practices came under further review after the pandemic forced tens of thousands of restaurants to close.
Grubhub, Uber Eats and its rival DoorDash Inc. also sued to strike down a New York City law that limits the fees these companies charge restaurants to 15%. Likewise, Grubhub and DoorDash challenge a similar law in San Francisco.
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