Uber has filed a lawsuit against DoorDash, accusing the company of stifling competition by forcing restaurant owners into exclusive agreements.
According to the complaint filed in the California Superior Court, Uber claims DoorDash threatens restaurants to only use their platform. DoorDash, which holds the largest share of the food delivery market in the U.S., allegedly pressures restaurants with multimillion-dollar penalties or the removal of their listings on the DoorDash app if they refuse to comply.
Uber asserts that DoorDash forces restaurants to handle orders from their own websites exclusively through DoorDash’s delivery services.
DoorDash has denied these allegations, calling Uber’s claims unfounded and suggesting that Uber cannot provide better alternatives to merchants and customers.
Uber and DoorDash are well-known for their apps connecting restaurants, consumers, and gig economy workers. Consumers use these apps to order food, which is then delivered by gig workers. Since 2020, both companies have launched cheaper delivery services for restaurants through their own apps and websites.
Uber claims DoorDash has gained significant market share by using anti-competitive tactics with large restaurant chains in the U.S. It alleges that restaurants face threats from DoorDash and are being penalized for seeking better alternatives.
Uber is seeking legal action, stating that these practices have cost the company "millions of dollars" and hindered the growth of its own delivery service, Uber Direct.
