Uber accuses DoorDash of anti-competitive practices in a lawsuit
Uber is suing DoorDash, accusing the biggest food delivery provider in the US of putting pressure on restaurants to exclusively use its services. According to The Wall Street Journal and The Financial Times, Uber filed the lawsuit in California on February 14. Uber said it filed the lawsuit after hearing from "restaurants across the country" that were left with no choice but to "cave to [DoorDash's] demands or pay the price."
Both DoorDash and Uber Eats offer their delivery services to restaurants, even for customers who buy from an establishment's own website or app. At the same time, they also offer advertising within their apps for those that want to promote their businesses. DoorDash has a significantly larger share of the market than Uber Eats and had previously said that 90 percent of major restaurants in the US is available on its platform.
DoorDash allegedly threatened to charge higher commission rates for handling orders made through its marketplace if the restaurant is also on Uber Eats. In its complaint, Uber said that that in one instance, the company threatened to raise a restaurant's commission rate by 30 percent per order placed. The lawsuit stated another instance wherein DoorDash allegedly told a restaurant that it would cost them millions of dollars in additional fees if it also teamed up with Uber. In 2024, a large restaurant group scrapped long-running plans to launch on Uber after threats from DoorDash to increase its commission rates, Uber said. In addition, DoorDash allegedly threatened to demote restaurants also available on Uber within its app.
Uber is now asking the court to compel DoorDash to change its business practices. Meanwhile, DoorDash denied all accusations. "Uber’s case has no merit," the company said in a statement. "Their claims are unfounded and based on their inability to offer merchants, consumers, or couriers a quality alternative."This article originally appeared on Engadget at https://www.engadget.com/apps/uber-accuses-doordash-of-anti-competitive-practices-in-a-lawsuit-130032964.html?src=rss