Uber has filed a lawsuit against rival delivery service DoorDash, accusing the company of pressuring restaurants into exclusivity agreements.
The lawsuit, submitted in California last week, alleges that DoorDash threatened to raise commission fees for restaurants that also partnered with Uber Eats.
“DoorDash’s coercive tactics reduce restaurant-customer and consumer choice, resulting in higher prices, lower-quality service, and decreased innovation,” Uber stated in its complaint, as reported by The Wall Street Journal.
DoorDash has pushed back against the claims, calling them baseless. “Their claims are unfounded and based on their inability to offer merchants, consumers, or couriers a quality alternative,” the company responded.
The food delivery industry surged during the pandemic but has struggled to maintain profitability in the years since.
DoorDash has managed to expand its market share by diversifying its services, offering grocery and retail deliveries in addition to restaurant orders.
Despite its growth, Uber Eats operates as an extension of Uber’s broader ride-hailing business. By last year, the platform had onboarded more than a million businesses across 11,000 cities.
Uber’s lawsuit cites multiple incidents where DoorDash allegedly interfered with business deals. In one case, a major restaurant group backed out of an exclusive partnership with Uber after DoorDash reportedly threatened to hike fees.
Another restaurant was allegedly told it would face a 30% commission increase unless it stayed loyal to DoorDash.
If Uber wins the case, DoorDash could face financial penalties and be forced to abandon these alleged practices.
As of 2024, DoorDash dominated the US food delivery market with a 63% share, while Uber Eats trailed at 25%.
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