Uber sues DoorDash, the US's largest food delivery service, over competition from Uber Eats
DoorDash, which has the largest share of the US food delivery market, also operated its services in Japan, but was
Uber sues DoorDash, alleging anti-competitive tactics | TechCrunch
https://techcrunch.com/2025/02/14/uber-sues-doordash-alleging-anti-competitive-tactics/
Uber sued DoorDash in California Superior Court. In the lawsuit, Uber claims that DoorDash is forcing restaurants to do business only with DoorDash. According to Uber, DoorDash is pressuring restaurants to enter into exclusive or near-exclusive contracts with DoorDash as a first-party delivery service. Orders placed through restaurants' websites that enter into this contract will be delivered by DoorDash. In addition, according to Uber, DoorDash is threatening to impose fines of hundreds of millions of yen and remove or demote rankings on the DoorDash app if the restaurant does not enter into this contract.
DoorDash and Uber Eats are well known as apps that connect restaurants, consumers, and workers. When consumers use the app to order food from a restaurant, workers pick up the food from the restaurant and deliver it to the consumer. In 2020, both companies launched their own white-label delivery services called Uber Direct and DoorDash Drive on-Demand , which are solutions for merchants to add delivery services to their own websites, apps, and other sales channels. The benefits are that restaurants can build delivery services more cheaply, consumers can order directly from the restaurant's own app or website, and Uber and DoorDash can manage their delivery workers.
According to Uber, DoorDash provides first-party delivery services to over 90% of America's largest restaurants. Uber claims that 'DoorDash is using anti-competitive practices to capture the market.' In response, a DoorDash spokesperson said in a statement to technology media TechCrunch, 'Uber's complaints are without merit. Their claims are unfounded and based on our failure to provide quality alternatives to retailers, consumers and delivery workers.'
Meanwhile, Sarfaraz Maredia, Uber's head of delivery for the Americas, said, 'More than one million retailers partner with Uber Eats because Uber gives them the freedom to decide how to reach more customers and grow their business with delivery.' 'We've heard growing complaints from restaurants that DoorDash's tactics limit that freedom and punish them for seeking better options. We hope that this complaint will put an end to unfair practices and allow restaurants to choose the service that's best for them without fear of penalty or retaliation.'
In the complaint, Uber cites the case of an anonymous 'major restaurant' that suddenly canceled its long-planned 'Uber Direct rollout plan.' According to Uber, the reason this 'major restaurant' canceled its Uber Direct rollout plan was because DoorDash threatened to raise the fees for third-party delivery services. According to Uber, such incidents are happening all over the place, and multiple customers have complained that they 'feel like they have a gun to their head,' 'DoorDash is a monopoly,' and 'DoorDash is threatening them.'
Uber is seeking a jury trial, and the lawsuit did not disclose damage amounts, but it claims DoorDash's anticompetitive tactics have cost Uber 'millions of dollars in lost revenue' and stunted the growth of Uber Direct.
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