Doordash Suit Against San Francisco Delivery-Fee Cap Scaled Back

DoorDash Inc. and Grubhub Inc.‘s challenge to a San Francisco rule capping the commissions delivery platforms charge restaurants was scaled back on Wednesday when a federal judge limited the companies to due process and takings clause claims.

The delivery platforms sued San Francisco in July 2021 after the city codified a pandemic-era rule capping delivery commissions at 15%. The rule violates both the U.S. and California Constitutions, and was instituted in retaliation for the companies’ support of Proposition 22, which exempted the platforms from the state’s worker status laws, DoorDash and Grubhub argued.

Judge Edward M. Chen of the ...