Bloomberg Law
Free Newsletter Sign Up
Login
BROWSE
Bloomberg Law
Welcome
Login
Advanced Search Go
Free Newsletter Sign Up

Uber Eats Joins DoorDash in Suing NYC Over Data-Sharing Law

Dec. 9, 2021, 4:29 PM

Uber Technologies Inc.‘s Uber Eats has joined DoorDash Inc. in suing New York City over a law that makes delivery apps share customer data with restaurants.

The data-sharing mandate “rewrites” agreements made between delivery platforms and restaurants and “runs roughshod” over individual users’ privacy interests, according to the complaint Uber Eats filed Dec. 3.

Judge Analisa Torres in the U.S. District Court for the Southern District of New York issued an order Wednesday saying the case will be combined with the similar suit from DoorDash.

Both lawsuits claim that New York City’s law is unconstitutional because it obligates the apps to share valuable information without requiring restaurants to implement safeguards for protecting the data.

“The ordinance compels platforms to turn over troves of their most sensitive data with no protections and for no compensation,” the Uber Eats complaint says.

The city agreed in October not to enforce the law against DoorDash while its legal challenge plays out in court. Uber Eats is also seeking reprieve from enforcement.

New York restaurants pushed for data-sharing to allow direct marketing to their customers, sidestepping delivery apps that the industry has become more reliant on during pandemic-forced closures.

In its complaint, Uber Eats argues that it already gives restaurants the ability to use marketing mechanisms such as loyalty programs. The delivery platform also offers, for a fee, access to insights on restaurant sales and customers.

Under New York City’s data-sharing law, restaurants are subject to limits on how they can use customer data, including a prohibition against selling it, and they must delete data if a customer asks. The law takes effect Dec. 27.

Ride-hailing platform Uber’s delivery division, known as Portier LLC, filed the latest lawsuit. The company is represented by lawyers from Kaplan Hecker & Fink LLP.

The case is Portier LLC v. City of New York, S.D.N.Y., No. 1:21-cv-10347, case consolidation order 12/8/21.

To contact the reporter on this story: Andrea Vittorio in Washington at avittorio@bloomberglaw.com

To contact the editor responsible for this story: Kibkabe Araya at karaya@bloombergindustry.com