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Uber Takes Legal Action Against DoorDash Over Exclusive Partnerships
Uber has initiated a lawsuit against DoorDash, the leading food delivery service in the United States, alleging that the company has coerced restaurants into using its platform exclusively. Reported by The Wall Street Journal and The Financial Times, Uber filed this legal action in California on February 14, highlighting concerns raised by numerous restaurants nationwide who feel pressured to comply with DoorDash’s demands or face significant repercussions.
Both DoorDash and Uber Eats provide delivery services to eateries, including those receiving orders through their own websites or applications. Additionally, these platforms offer advertising opportunities to restaurants wishing to elevate their visibility. Historically, DoorDash has dominated the market, claiming that approximately 90 percent of major U.S. restaurants are accessible through its application.
Within the lawsuit, Uber alleges that DoorDash has threatened to impose higher commission fees on restaurants for orders made via its platform if these establishments also partnered with Uber Eats. In one cited example, DoorDash purportedly warned that it would increase a restaurant’s commission rate by 30 percent for orders placed on its marketplace. The complaint also references another scenario where DoorDash allegedly indicated that a partnership with Uber could incur millions of dollars in additional fees for a restaurant. Moreover, in 2024, a significant restaurant group reportedly abandoned plans to engage with Uber due to intimidation from DoorDash regarding commission increases. Additionally, Uber claims that DoorDash has threatened to demote restaurants that are also accessible through Uber Eats in its own application.
Now, Uber is seeking court intervention to mandate that DoorDash alters its business methodologies. In response to these allegations, DoorDash has firmly denied all claims, asserting that Uber’s lawsuit lacks substance. “Uber’s case has no merit,” a DoorDash representative stated. “Their claims are unfounded and based on their inability to offer merchants, consumers, or couriers a quality alternative.”
Source
www.engadget.com