Uber has filed a lawsuit against DoorDash in California, accusing the food delivery giant of using bullying tactics to secure exclusive deals with restaurants. According to Uber, DoorDash threatens restaurants with significant penalties or demotions on its app if they do not agree to exclusive or near-exclusive contracts, insisting that restaurants only process orders through their own websites. DoorDash, which dominates the U.S. food delivery market, has denied the claims, stating that Uber’s allegations stem from its inability to offer better alternatives.
Both companies provide platforms that connect restaurants, consumers, and gig workers but also compete with their own white-label delivery services. Uber asserts that over 90% of the largest U.S. restaurants use DoorDash for first-party delivery, and claims DoorDash’s practices are anti-competitive. Uber highlights that numerous restaurants feel pressured and fear retaliation for choosing different delivery options. The lawsuit aims to stop these practices, though Uber has not specified a damage amount, citing that such practices have cost it millions in revenue.
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