DoorDash filed a lawsuit against New York City today over a law that requires it to share the data that it collects on customers with restaurant establishments.
DoorDash is arguing that the law essentially allows restaurants to use its trade secrets to better compete with it. The suit states that “by forcing DoorDash to disclose that trade secret to restaurants, the ordinance eliminates DoorDash’s central property right in the trade secret — the right to exclusive use, and the right to exclusive use is the reason the trade secret has economic value.” DoorDash also argues that the law imposes no restrictions on what restaurants can do with said data, nor does it outline specific requirements that they must follow in order to safeguard and store the data. Should the law remain in place, the company has stated that it will have to “modify its services in a way that will result in fewer resources being offered to restaurants, fewer earnings opportunities for delivery couriers, and fewer choices for New York City customers.”
This is not the first time that DoorDash has sued New York City. In fact, it is the second suit it has filed just this week! On September 10th, DoorDash joined its competitors – Uber Eats and Grubhub – to sue the city to halt a permanent delivery fee cap that was also part of City Council’s summer bill package.
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