DoorDash Gets Reprieve From NYC Customer Data Law

(Bloomberg) -- New York City agreed not to enforce against DoorDash Inc. a new law requiring food-delivery services to share customer information with restaurants while a legal challenge by the company plays out in court.

On Monday, the city said in a filing in Manhattan federal court that it would put the law on hold against DoorDash until the suit the company filed last month is resolved. DoorDash said it was withdrawing its request for an order blocking enforcement of the law, which is still set to go into effect against other food-delivery apps on Dec. 27.  

DoorDash claims the law, which requires delivery companies to share with requesting restaurants the names, phone numbers and email addresses of customers who’ve ordered their food, violates its customers’ privacy.

The measure is part of a package of bills aimed at regulating the food-delivery industry and shoring up the city’s restaurant industry. The pandemic created a boom in online food delivery at the same time that restaurants were forced to close their dining rooms and, in many cases, their doors. DoorDash, Grubhub Inc. and Uber Technologies Inc.’s Uber Eats have also sued over a 15% limit the city placed on commissions charged by delivery services.

The case is DoorDash Inc. et al v. City Of New York, 21-cv-07695, U.S. District Court, Southern District of New York (Manhattan).

©2021 Bloomberg L.P.