🚨 Legal Battle Begins
Uber has taken its biggest competitor, DoorDash, to court. The lawsuit, filed on Feb 14 in California, accuses DoorDash of using coercive tactics. Uber claims DoorDash forces restaurants into exclusive deals, limiting competition. The company says it has lost millions in revenue due to these practices. DoorDash, with a 67% market share in 2024, dominates US food delivery, while Uber holds 23%.
⚖️ The Core Allegations
Uber argues DoorDash threatens restaurants with penalties for working with Uber Direct. These penalties include increased commission rates or lower search rankings. Some restaurants were even removed from the DoorDash app. Uber says this has forced businesses to drop Uber Direct, despite being satisfied with its service. A 2024 case saw a restaurant cancel its Uber Direct rollout after DoorDash allegedly threatened higher fees.
📉 Impact on Market & Consumers
Uber claims these tactics harm competition, restaurants, and consumers. Without choice, restaurants pay higher fees, which get passed to customers. Uber says this leads to worse service, longer wait times, and increased delivery costs. The lawsuit also argues DoorDash’s dominance in first-party delivery blocks other companies from entering the market.
🗣️ The Companies Speak Out
Uber’s lawsuit is backed by legal heavyweights from Cooley LLP. DoorDash, however, dismisses the claims. “Uber’s case has no merit,” said a DoorDash spokesperson. They argue that Uber simply can’t compete. As the lawsuit unfolds, the US food delivery market’s competitive future hangs in the balance.
Is DoorDash limiting competition, or is Uber just losing the race?
