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(Reuters) – Uber Technologies has initiated a legal action against DoorDash, alleging that the food delivery company engages in practices that undermine competition, ultimately resulting in increased prices for both eateries and their patrons.
In its complaint submitted to the California Superior Court in San Francisco, Uber claims that DoorDash pressures restaurants into designating it as their exclusive or preferred delivery service.
The lawsuit asserts, “DoorDash’s unethical strategies have led to substantial financial losses for Uber and have illegally hindered the growth of Uber Direct, which is part of the Uber Eats framework for in-house delivery services,” as reported by the Wall Street Journal.
In response, a DoorDash representative asserted that “Uber’s case lacks substance. Their allegations are baseless and stem from their failure to provide merchants, consumers, or delivery personnel with a viable alternative,” according to a statement sent to Reuters.
Uber has not yet provided a statement following this response from DoorDash.
Source
finance.yahoo.com