Food delivery service DoorDash (DASH) - Get DoorDash Report is suing New York City over a new law requiring food delivery companies to share customer data with restaurants, saying that the law violates customer privacy.
New York City defended the law with Nicholas Paolucci, spokesman for the city's law department telling Reuters that "the law puts customers first. It puts them in control of their information when they place orders through these apps."
Meanwhile DoorDash suit claims that the city has exhibited "naked animus" by requiring food delivery app companies provide customers' names, phone numbers, email addresses and delivery addresses to restaurants.
The San Francisco company said that the law is a "shocking and invasive intrusion of consumers' privacy."
DoorDash filed its suit in federal court in Manhattan as New York City has upped regulation of the food delivery industry amid record deliveries during the COVID-19 pandemic.
DoorDash shares were up 2.8% Wednesday at last check.
The lawsuit is the second filed by the company against New York City in about a week.
Last week, DoorDash, Uber Eats (UBER) - Get Uber Technologies, Inc. Report and Grubhub (GRUB) - Get Grubhub, Inc. Report filed a lawsuit against the city over a law that would license them and cap the commissions they can charge restaurants.
"Those permanent price controls will harm not only plaintiffs, but also the revitalization of the very local restaurants that the city claims to serve," the companies said in the lawsuit filed late Thursday.
The companies petitioned the federal court in New York to issue an injunction preventing the city from enforcing the fee cap. The New York City Council approved the cap in August.