DoorDash Charges NYC Restaurants Excessive Fees, Class Action Alleges

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A proposed class action alleges DoorDash charges New York City restaurants “excessive” delivery fees that surpass the limit set by city law.

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The 16-page DoorDash class action lawsuit explains that in May 2020, the New York City Council passed a bill placing a 20-percent cap on the total fees third-party delivery companies can charge restaurants, which includes a 15-percent cap for delivery fees and a five-percent cap for marketing, credit card processing, or other additional fees.

The complaint explains that after COVID-19 lockdowns prohibited on-premises dining at restaurants throughout the city, an unprecedented number of establishments began relying on delivery apps like DoorDash to stay afloat. According to the suit, the local legislation was introduced to protect restaurants from the “exorbitant” fees companies were charging for their delivery services.

However, the filing argues, DoorDash has been “intentionally and repeatedly” imposing illegally high fees on New York City restaurants since the measure first came into effect in June 2020.

The lawsuit was filed by Harlem Shake, a hamburger restaurant in Manhattan that began paying fees to participate in DoorDash’s delivery service program in 2019. It wasn’t until June 2023 that restaurant staff discovered the defendant was reporting charges that well exceeded the fee cap established by city law, the filing alleges.

After demanding an explanation for the excessive charges, Harlem Shake received a report from DoorDash stating that between November 2019 and May 2023, it had improperly taken $13,932 in “miscalculated fees,” the case contends. According to the suit, DoorDash “insisted” that Harlem Shake sign a release of any claims related to its incorrect fees in exchange for a payment of $7,259.19.

“DoorDash thereafter provided a partial accounting of the charges DoorDash had made on [the plaintiff’s] DoorDash account,” the complaint says. “To date, DoorDash has failed to provide any full accounting, but has admitted that it charged fees in excess of the fee cap.”

Per the case, DoorDash’s non-compliance with New York City delivery fee caps is “widespread and pervasive.”

The lawsuit looks to represent any food service establishments located within the five New York City boroughs that contracted with DoorDash for delivery services and were charged more for such delivery services than allowed under city law.

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