Uber Eats Joins DoorDash to Sue NYC Over Data Sharing Law

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

The data-sharing mandate “rewrites” the agreements between delivery platforms and restaurants and “overrides” the privacy interests of individual users, according to the. complaint Uber Eats filed a case on December 3.

Judge Analisa torres in the United States District Court for the Southern District of New York issued a order On Wednesday, the case will be combined with the similar DoorDash lawsuit.

Both lawsuits claim New York City law is unconstitutional because it requires apps to share valuable information without forcing restaurants to implement safeguards to protect the data.

“The ordinance obliges the platforms to hand over treasures of their most sensitive data without protection and without compensation”, indicates the complaint Uber Eats.

The city agreed in October not to enforce the law against DoorDash while its legal challenge unfolds in court. Uber Eats is also asking for a stay of law enforcement.

New York restaurants have been pushing for data sharing to allow direct marketing to their customers, avoiding delivery apps the industry has become more reliant on during forced shutdowns in the event of a pandemic.

In its complaint, Uber Eats argues that it is already giving restaurants the ability to use marketing mechanisms such as loyalty programs. The delivery platform also offers, for a fee, access to information about 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 ban on selling it, and they must delete the data. if a customer requests it. The law comes into force on December 27.

The delivery division of the Uber rideshare platform, known as Portier LLC, has filed the latest complaint. The company is represented by attorneys from Kaplan Hecker & Fink LLP.

The case is Doorman LLC v. New York City, SDNY, No.1: 21-cv-10347, Business Combination Order 12/08/21.


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