Food Delivery Giants Resolve Legal Fight Over NYC Wage and Fee Laws

Three of the nation’s largest food delivery platforms—DoorDash, Grubhub, and Uber Eats—have reached a settlement with New York City over a legal dispute involving worker wage mandates and fee caps. The resolution comes after nearly two years of litigation challenging city laws enacted during the COVID-19 pandemic to protect delivery workers and struggling restaurants. Under the settlement, the companies will drop their lawsuits with prejudice and anticipate that the New York City Council will enact changes allowing for more flexible fee structures.

The controversy centered on two core issues: a minimum pay rate for delivery drivers and permanent caps on fees delivery companies can charge restaurants. As of April 1, 2025, the Minimum Pay Rate has raised driver earnings to $21.44 per hour before tips—an almost fourfold increase from 2023. Meanwhile, the existing law has limited service fees to 15% for delivery and 5% for other services, which companies claimed restricted their business models and cost them hundreds of millions of dollars in lost revenue.

While Grubhub supported the settlement as a balanced solution, DoorDash and Uber Eats have yet to comment. The city views the resolution as a victory for workers, asserting that legal delays had already cost millions in lost wages. This outcome may influence how other municipalities, like San Francisco, approach similar commission cap legislation and the balance between labor protections and platform profitability.

The final terms hinge on legislative follow-through, as New York City’s Council is expected to adopt the revised framework. The deal represents a rare detente in the ongoing tension between gig economy platforms and municipal labor regulations.