Uber Takes DoorDash to Court: Alleging Anti-Competitive Practices in Food Delivery Market

In a significant development, ride-hailing giant Uber has filed a lawsuit against DoorDash, accusing the food delivery company of engaging in anti-competitive practices. The lawsuit, filed in the Superior Court of California, alleges that DoorDash has been intimidating restaurant owners into exclusive deals, stifling competition in the food delivery market.

The Allegations

Uber claims that DoorDash, which dominates the US food delivery market, has been bullying restaurants into signing exclusive or near-exclusive agreements for first-party delivery services. This means that DoorDash insists on being the sole handler of orders placed through restaurants’ own websites. Uber alleges that DoorDash threatens restaurants with multimillion-dollar penalties or removal from the DoorDash app if they refuse to comply.

The Impact on Competition

Uber argues that DoorDash’s practices have resulted in the company handling first-party deliveries for over 90% of the largest enterprise restaurants in America. This, Uber claims, has limited the freedom of restaurants to choose their own delivery partners and has punished them for seeking better options. Uber’s head of Americas delivery, Sarfraz Maredia, stated that the company has received numerous complaints from restaurants about DoorDash’s tactics and hopes that the lawsuit will put an end to these unfair practices.

The Lawsuit’s Implications

The lawsuit seeks a jury trial and requests that the court put an end to DoorDash’s alleged anti-competitive practices. While Uber did not specify the amount of damages sought, the company claims that DoorDash’s actions have cost it millions of dollars in revenue and restricted the growth of its Uber Direct service.

The Battle for Food Delivery Supremacy

The lawsuit is the latest development in the intense competition between Uber and DoorDash in the food delivery market. Both companies offer white-label delivery services, allowing restaurants to use their own apps and websites to receive orders. However, DoorDash’s dominance in the market has raised concerns about its business practices and their impact on competition.