Inside NYC’s Cheap-Moving Price War: Dumbo vs. Piece Of Cake

NEW YORK CITY —On Reddit, the debate of the cheapest movers in New York City comes down to two big players: Dumbo Moving & Storage and Piece of Cake.

That debate has since landed in the courts, where Dumbo sued Piece of Cake in an antitrust lawsuit, accusing its rival of using below-cost prices, exclusive relationships with apartment buildings, aggressive advertising, alleged review manipulation and other practices to drive competitors from the New York City moving market.

The case began in New York Supreme Court before Piece of Cake removed it to the U.S. District Court for the Southern District of New York in February.

Dumbo filed its Second Amended Complaint on June 10, bringing four additional plaintiffs into the case:

• Big Apple Moving & Storage, Inc.
• All Star Moving and Storage, Inc.
• Zero Gravity Moving LLC
• Brownstone Brothers Moving Inc.

The result is a five-plaintiff case involving competitors in the New York moving industry, all represented by Maurice Newmark Ross of Barton LLP.

Piece of Cake then moved to dismiss the case on July 28. The motion is now pending before U.S. District Judge Edgardo Ramos.

The new case is related to an earlier lawsuit, where Dumbo accused Piece of Cake of taking or improperly using its private business software and trade secrets.

In a 2023 decision, Ramos allowed certain copyright and trade-secret claims in that earlier case to proceed while dismissing or rejecting several other claims.

Piece of Cake and Dumbo Moving & Storage have not responded to Patch's request for comment.

What Does Dumbo Allege About Piece Of Cake's Prices?

Dumbo alleges that the typical price in the New York City moving market in 2019 was about $1.25 per cubic foot, plus a mileage charge, or about $100 an hour per mover.

In 2022, according to Dumbo, Piece of Cake routinely quoted customers between 60 cents and 80 cents per cubic foot.

The complaint estimates that movers received about 50 cents per cubic foot and that gas, truck depreciation, boxes and other costs added another 10 cents to 30 cents.

That math, Dumbo argues, meant Piece of Cake sometimes performed moves at or below its costs.

Dumbo alleges that the strategy pushed the market rate down from about $1.25 per cubic foot to between $1.10 and $1.15.

Why Does A Low Moving Price Become An Antitrust Issue?

Gregory Feit, a partner at Reavis Page Jump LLP, told Patch that lowering prices to attract customers, rather than to drive out competitors, cannot by itself form the basis of a predatory-pricing claim.

Instead, Dumbo would need to show that Piece of Cake’s prices were below its average variable costs and Piece of Cake had a reasonable chance of recovering the losses from those below-cost prices, he said.

"In other words, if Piece of Cake’s prices are above its average variable cost, its pricing will presumptively be held lawful," Feit said.

The legal concern arises when below-cost pricing becomes part of a strategy to eliminate competition and then gives the company enough market power to raise prices and recover the losses it incurred.

Dumbo alleges that Piece of Cake already holds more than 50 percent of the relevant market and that several longtime competitors, including Wayne Moving and Flat Rate Movers, have left the market.

The complaint also alleges that Dumbo's revenue fell from $27 million in 2020 to $22 million in 2025.

"Evaluating recoupment typically requires close analyses of the structure and conditions of the relevant market, and markets that are highly diffuse and competitive, or where new entry is easy, typically do not support monopoly pricing," Feit said.

Antitrust law generally does not punish a company simply because it charges less than its competitors.

In fact, lower prices can benefit consumers and represent exactly the kind of competition antitrust laws seek to preserve.

“Antitrust law is concerned with protecting consumers, and it does so by seeking to preserve competitive markets rather than protecting the interests or bottom-lines of particular competitors in that market," Richard H. Dolan, co-founder of Schlam Stone & Dolan LLP, told Patch.

A company also can legitimately sell below cost in some circumstances.

A new business might accept losses while establishing itself. A company leaving a market might discount its remaining inventory.

“Absent special factors impacting a particular market, below-cost pricing is self-defeating since losing a little on each transaction but making it up via volume is the definition of an irrational business practice," he said.

What Market Is The Lawsuit Actually Talking About?

The definition of the market can determine how a court views the case.

Dumbo defines the relevant market as professional residential moving and storage services involving moves originating within New York City and going to residences within New York City and its metropolitan area.

The complaint estimates that 450,000 to 550,000 moves occur in New York City each year.

It estimates that roughly half use professional movers, producing a potential professional-moving market of about 225,000 to 275,000 moves annually.

Dumbo estimates the market's annual revenue at between $225 million and $302 million.

“The availability of substitute goods or services available to a consumer for the product/service supposedly being offered at a predatory price makes it less likely that a low-pricing strategy could give rise to monopoly power," Dolan said.

Thus, the complaint argues that professional moving is a distinct market because consumers cannot easily substitute another service for a professional mover.

Did Piece of Cake Rely Only On Low Prices?

Dumbo accuses Piece of Cake of pursuing “preferred mover” arrangements with property managers and building employees that allegedly prevent competitors from performing moves in certain buildings.

The complaint identifies Stellar Management, Rose Associates, Stonehenge Management and RXR Realty among property management or development companies it says entered into relationships with Piece of Cake.

Dumbo also alleges that some building superintendents and doormen received commissions of about 15 percent of the cost of a move in exchange for approving Piece of Cake while rejecting competitors.

The complaint cites five Brooklyn and Manhattan buildings where, according to Dumbo, superintendents told the company they had exclusive relationships with Piece of Cake.

What Role Does Yelp Play?

Dumbo also alleges that Piece of Cake used its relationship with Yelp to limit competitors' access to advertising and reviews.

According to the complaint, Dumbo had access to its Yelp page and paid for Yelp advertising before 2019.

Dumbo points to an April 2020 social-media collaboration between Piece of Cake and Yelp as part of its allegations.

It alleges that Yelp banned Dumbo in August 2020 and that the restriction remained in place for years.

The complaint further alleges that Piece of Cake's advertising spending drove up the price of online advertising, including Google and Yelp keywords.

Dumbo says Piece of Cake spent slightly more than $2 million a month on advertising, including about $1.15 million on paid search.

The lawsuit also alleges that Piece of Cake manipulated online reviews by offering incentives for positive reviews and paying people to post them.

Dumbo cites individual Yelp and Google profiles with limited review histories as examples it considers suspicious.

What About the “All-Inclusive” Moving Quotes?

The lawsuit goes beyond competition between moving companies and accuses Piece of Cake of misleading consumers.

Dumbo alleges that Piece of Cake advertised “guaranteed, all-inclusive” quotes but later demanded additional money for items, stairs, distances and other alleged charges.

The complaint describes one customer who allegedly received a $500 quote after providing photographs and video of the items to be moved, then paid about three times that amount.

Dumbo also alleges that movers pressured customers for tips, including one customer who reported being told that 20 percent was the minimum.

Those allegations form separate claims under New York's consumer-protection and false-advertising statutes.

Did Piece of Cake Park the Competition?

Dumbo also alleges that Piece of Cake routinely parked illegally and violated traffic and moving regulations, giving it an advantage over competitors that followed the rules.

The complaint cites neighborhood complaints in Astoria about moving trucks blocking streets, sidewalks and crosswalks and about allegedly dangerous driving.

Dumbo argues that the alleged conduct reduced the cost and disruption of Piece of Cake's operations and helped the company compete against movers that complied with parking regulations.

The complaint goes further, alleging that Piece of Cake had arrangements with City officials that allowed the conduct to continue.

The filing does not identify those officials or establish that such an arrangement existed.

The motion to dismiss is now fully briefed and awaiting a decision from Judge Ramos, with no ruling reflected on the public docket.