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DoorDash is currently requesting the court to dismiss a lawsuit initiated by Uber earlier this February, characterizing it as unfounded and a “cynical and calculated scare tactic.” The lawsuit from Uber accuses DoorDash, the leading food delivery service in the United States, of pressuring restaurants into exclusive agreements with their platform. Uber claims to have received feedback from numerous “restaurants across the country” stating that DoorDash imposes higher commission fees on those that also engage with Uber Eats. Furthermore, Uber alleges that DoorDash has threatened to lower the visibility of restaurants that choose to partner with its competitor.
In response to these allegations, DoorDash contends in its dismissal motion that Uber’s legal action is not aimed at fostering competition, but rather at evading it. DoorDash argues that Uber has failed to provide merchants, consumers, and delivery personnel with the same quality of service that distinguishes DoorDash in the market, leading Uber to resort to what they describe as “baseless legal claims” instead of competing effectively.
Moreover, DoorDash maintains that the basis of Uber’s complaint rests on a flawed premise—that DoorDash must alter its established business practices, which they assert are in favor of competition, to accommodate Uber’s operations. The company emphasizes that legal considerations should prioritize the protection of competition rather than the interests of individual competitors.
On the other hand, Uber conveyed to TechCrunch that DoorDash is struggling to grasp the essence of its complaint, stating, “When restaurants are forced to choose between unfair terms or retaliation, that’s not competition — it’s coercion.” The case is set to be addressed in the Superior Court of San Francisco County, California, on July 11.
Source
www.engadget.com