Uber sues DoorDash for anticompetitive behaviour
Make us a preferred source
Make us a preferred source on Google
The news: Uber is suing food delivery rival DoorDash for anticompetitive practices that it argues drive up costs for consumers and restaurants.
The context: In the lawsuit filed in California, Uber accuses DoorDash of coercing restaurants to work exclusively for the company, and threatening restaurants with higher commission rates for working with competitors like Uber.
The food delivery rivals both operate marketplaces through which consumers can browse and order restaurant food, as well as providing direct delivery services for online orders placed through restaurant websites.
Restaurants pay Uber and DoorDash for both advertising and delivery costs, with DoorDash holding 63% of US market share in 2024, followed by Uber at 25%.
The complaint reads that Uber has been harmed and lost millions in terminated and potential revenue because of DoorDash’s “abusive tactics.” The document continues that DoorDash’s unlawful conduct harms not only Uber, but also restaurants and end customers.
“DoorDash’s coercive tactics reduce restaurant-customer and consumer choice, resulting in higher prices, lower-quality service, and decreased innovation, all while further entrenching DoorDash’s market power.”
Uber argues that DoorDash is a “monopolist” and has bullied restaurants-customers to such an extent they feel they have a “gun to their head.”
Uber is seeking an unspecified amount in damages.
The sources: California Superior Court filing, Reuters
