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Uber Initiates Legal Action Against DoorDash Over Competitive Practices

Uber has launched a lawsuit against DoorDash, claiming the food delivery giant engages in anti-competitive practices that pressure restaurants into exclusivity. The lawsuit was filed in California on February 14, as reported by multiple sources.

According to Uber, DoorDash has been threatening restaurants with increased commission rates if they also partner with Uber Eats. The complaint alleges that DoorDash’s tactics leave restaurants with no viable options but to comply with its demands.

DoorDash commands a significant portion of the food delivery market, reportedly serving 90 percent of major restaurants in the U.S. Uber’s lawsuit highlights instances where DoorDash threatened to raise commission rates by up to 30 percent per order for restaurants that also listed their services on Uber Eats. In one case, a restaurant group abandoned plans to collaborate with Uber due to threats of increased fees from DoorDash.

Additionally, the lawsuit claims DoorDash has threatened to demote restaurants that are available on both platforms. Uber is seeking a court order to compel DoorDash to alter its business practices.

In response, DoorDash has denied the allegations, asserting that Uber’s claims lack merit and are rooted in its inability to provide a competitive alternative.

For further details, visit the original source: Engadget.