DoorDash sues New York City over rights to customer data

DoorDash is suing New York City over a new law that requires delivery companies to share customer data with restaurants.

The lawsuit, filed Wednesday, is the latest in a string of legal tussles between the delivery companies and local governments, reflecting unease over the phenomenal growth of delivery and its impact on restaurants. Last week, DoorDash, Grubhub and Uber Eats sued New York over a separate bill that caps the fees delivery companies can charge to restaurants. DoorDash and Grubhub are also suing San Francisco over fee caps adopted there.

In its new lawsuit, DoorDash says an ordinance passed by the New York City Council in late July is unconstitutional and violates customer privacy. Under the law, delivery companies must share data collected on customers __ including names, addresses, phone numbers and order contents __ to any restaurant that requests that information. Customers can opt out and keep their information private, but only on an order-by-order basis.

“In an era of heightened concerns about data privacy and identity theft, this compelled disclosure is a shocking and invasive intrusion of consumers’ privacy,” the San Francisco company said in its court filing. The company pointed out that in-person diners would never be asked to share the same information with restaurants.

But many restaurants __ fed up with delivery fees and lack of transparency __ supported the bill. The NYC Hospitality Alliance, which represents bars and restaurants in New York, says the bill reduces the leverage delivery companies have over restaurants, because it ensures they won’t lose access to their customers if they decide to leave a delivery platform. It also gives them a chance to market directly to customers.

Delivery companies saw big sales gains over the last year as pandemic lockdowns closed restaurant dining...