• Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer
Wednesday, March 22, 2023
Montgomery County News Online
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
    • Crytpocurrency
    • Gaming
    • Gadgets
  • Sports
  • Health
  • General
    • Business Services
  • Travel
  • Press Releases
  • Popular
No Result
View All Result
No Result
View All Result
Home News

Grubhub, Uber Eats, Postmates Must Face Diners’ Lawsuit Over U.S. Restaurant Prices – Reuters

grubhub,-uber-eats,-postmates-must-face-diners’-lawsuit-over-us.-restaurant-prices-–-reuters
Share on FacebookShare on Twitter

A rider for “Grubhub” food delivery service rides a bicycle during a delivery in midtown Manhattan following the outbreak of the coronavirus disease (COVID-19) in New York City, New York, U.S., July 9, 2020. REUTERS/Mike Segar

Register now for FREE unlimited access to Reuters.com

NEW YORK, March 30 (Reuters) – A U.S. judge on Wednesday said Grubhub, Uber Eats and Postmates must face an antitrust lawsuit by diners who accused them of driving up menu prices by exploiting their dominance in meal deliveries during the COVID-19 pandemic.

U.S. District Judge Lewis Kaplan in Manhattan said it was reasonable to infer that requiring restaurants to accept “no-price competition clauses” left them with “no choice but to raise prices” regardless of where diners ordered meals.

He also said diners plausibly alleged that Grubhub and Uber Eats’ more restrictive clauses discouraged restaurants from using other platforms, despite their need to generate enough sales to stay afloat and offset low profit margins.

Register now for FREE unlimited access to Reuters.com

“Defendants’ motion to dismiss is denied in its entirety,” Kaplan wrote.

Diners claimed that the no-price competition clauses barred restaurants from charging lower prices for dining in or ordering takeout, while Grubhub and Uber Eats also forbade restaurants from charging less to customers who ordered on rival platforms.

They said the harm from inflated meal prices was compounded by “supracompetitive” 5% to 10% delivery fees charged to diners and 30% commission rates often charged to restaurants.

The proposed class action sought triple and other damages for dine-in and delivery customers in the United States since April 2016.

Grubhub, owned by Netherlands-based Just Eat Takeaway.com (TKWY.AS), said it was disappointed with the decision and will continue defending its dining-related services.

Uber Eats and Postmates, both owned by Uber Technologies Inc (UBER.N), did not immediately respond to requests for comment. Lawyers for the diners said they were pleased with the decision.

The practices of delivery companies faced increased scrutiny after the pandemic forced tens of thousands of restaurants to close and many more to temporarily shut their dining rooms.

Grubhub, Uber Eats and rival DoorDash Inc (DASH.N) have also sued to overturn a New York City law capping the fees they charge restaurants at 15%, while Grubhub and DoorDash are challenging a similar law in San Francisco. read more

The case is Davitashvili et al v Grubhub Inc et al, U.S. District Court, Southern District of New York, No. 20-03000.

Register now for FREE unlimited access to Reuters.com

Reporting by Jonathan Stempel in New York; Editing by Lisa Shumaker

Our Standards: The Thomson Reuters Trust Principles.

Montgomery County News Online

© 2021 Montgomery County News Online

Navigate Site

  • Disclosure
  • Privacy Policy
  • DMCA Policy
  • CCPA
  • Medical Disclaimer

Follow Us

No Result
View All Result
  • Home
  • DMCA Policy
  • Medical Disclaimer
  • Privacy Policy
  • Disclosure
  • CCPA
  • Terms of Use

© 2021 Montgomery County News Online

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT