Uber has filed a lawsuit against DoorDash, accusing its rival of using anti-competitive practices to dominate the food delivery market. Uber claims that DoorDash intimidates restaurants into exclusive deals, threatening them with penalties or reduced visibility on the DoorDash app if they work with other delivery services.
Specifically, Uber alleges that DoorDash insists on handling first-party delivery orders, which means that restaurants must use DoorDash to fulfill orders placed through their own websites. This, according to Uber, restricts restaurants’ freedom and limits their ability to explore more affordable delivery options.
Uber also claims that DoorDash has used its market dominance to lock in more than 90% of the largest restaurant chains in the US. The company alleges that DoorDash has used aggressive tactics to win this market share.
One example cited in the lawsuit is a restaurant company that planned to introduce Uber Direct across its brands but was allegedly threatened by DoorDash with increased fees for third-party delivery services. Uber claims that this is not an isolated incident and that multiple customers have reported feeling intimidated and pressured by DoorDash.
Uber is seeking a jury trial and unspecified damages for the alleged anti-competitive practices, which the company claims have cost it millions of dollars in revenue and hindered the growth of Uber Direct. DoorDash has denied these accusations, saying that Uber’s claims are unfounded and that it offers a superior service to restaurants and consumers.
Original source: Read the full article on TechCrunch
