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3mo ago

Uber Files Lawsuit Against DoorDash Over Alleged Anticompetitive Practices

The lawsuit accuses DoorDash of pressuring restaurants into exclusivity, inflating costs, and stifling competition in the food delivery market.

The Uber logo is shown on the building in Los Angeles, California, U.S., February 14, 2024. REUTERS/Mike Blake/File Photo
A DoorDash sign is pictured on a restaurant in the Manhattan borough of New York City, New York, U.S., December 9, 2020. REUTERS/Carlo Allegri/File Photo
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Uber on Friday filed suit against DoorDash, accusing its food delivery rival of anticompetitive business practices.

Overview

  • Uber has filed a lawsuit against DoorDash in California Superior Court, alleging anticompetitive practices that harm restaurants, customers, and Uber's business operations.
  • The complaint claims DoorDash coerces restaurants into exclusive agreements by threatening higher commission rates, additional fees, or reduced visibility within its app.
  • Uber alleges that these practices have cost the company millions in revenue and prevented the growth of its Uber Eats first-party delivery platform, Uber Direct.
  • DoorDash, which holds a dominant 62.7% market share in the U.S. food delivery sector, denies the allegations and calls Uber's claims unfounded.
  • Uber is seeking unspecified damages and a court order to compel DoorDash to change its business practices, asserting the need for fair competition in the delivery market.