Uber Accuses DoorDash of Anti-Competitive Practices in New Lawsuit

Uber has taken legal action against DoorDash, filing a lawsuit in the Superior Court of California. The ride-hailing and delivery giant accuses DoorDash of engaging in anti-competitive tactics that stifle competition within the food delivery industry. Uber contends that DoorDash pressures restaurants into exclusive or near-exclusive partnerships for first-party delivery services, thereby limiting market options.

The core of Uber's complaint lies in DoorDash's insistence on managing orders placed through restaurants' own websites. Both companies offer white-label delivery solutions—Uber Direct and DoorDash Drive-on-Demand—launched in 2020, which allow customers to order directly from restaurants' apps and websites. These services are marketed as a cheaper alternative for restaurants, providing them with more autonomy over their delivery processes.

Uber's lawsuit further alleges that DoorDash's influence extends over 90% of the largest enterprise restaurants in the U.S., a market position achieved through what Uber describes as anticompetitive practices. With the largest share of the food delivery market in the country, DoorDash allegedly threatens restaurants with significant financial penalties or reduced visibility on its app if they do not comply with exclusive delivery agreements.

Restaurants have voiced concerns over DoorDash's tactics, indicating that such practices restrict their operational freedom and penalize them for exploring better options. Uber's legal argument emphasizes that these alleged anticompetitive actions harm consumers by limiting their choices and stifling competition.

In response to the lawsuit, a DoorDash spokesperson categorically denied the allegations, asserting that "Uber's case has no merit." The spokesperson dismissed Uber's claims, suggesting that the accusations lack substantiation.

"More than 1 million merchants partner with Uber Eats because we’ve helped them to reach more customers and provided them the freedom to decide how they want to grow their businesses with delivery," – Sarfraz Maredia, head of the Americas for delivery at Uber