Uber sues DoorDash for anticompetitive practices in delivery business

• Uber sued its competitor DoorDash on Friday, Feb. 14. The suit says DoorDash coerced restaurants to go with them over competitors.
• Uber claims DoorDash’s business practices cost it millions.
• DoorDash controls 63% of the delivery market, while Uber holds a 25% market share.

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Uber filed a lawsuit against DoorDash Friday, Feb. 14, accusing its competitor of anticompetitive practices. Uber claims DoorDash pushes restaurants into using the company as their exclusive delivery partner. 

“DoorDash’s underhanded tactics have cost Uber millions of dollars in revenue and unlawfully restricted its ability to grow Uber Direct, the Uber Eats platform for first-party delivery,” the ride-share giant said in its lawsuit, according to a report from the Wall Street Journal.

DoorDash denied any wrongdoing in their business.

“Uber’s case has no merit. Their claims are unfounded and based on their inability to offer merchants, consumers, or couriers a quality alternative,” DoorDash said in a statement to Reuters and the Journal. 

Uber and DoorDash both offer app-based food delivery services. Consumers can browse and order food directly from the app and have it delivered to their door. In some cases, the companies also handle delivery orders directly through the restaurants’ website. 

Restaurants pay the service commissions for advertising and delivery. DoorDash controls 63% of the market, while Uber holds 25%, according to Earnest Analytics. 

“DoorDash’s coercive tactics reduce restaurant-customer and consumer choice, resulting in higher prices, lower-quality service, and decreased innovation,” Uber said in its lawsuit. 

The lawsuit seeks a court order for DoorDash to change the way it operates its business. Uber could also be entitled to damages. 

The company’s suit lays out a situation where DoorDash threatened to raise a restaurant’s commission rates by 30% per order if it partnered with its competitor. Uber claims it lost millions of dollars in business due to the practice.