Uber Sues DoorDash for Anticompetitive Practices, Citing Market Abuse

Legal battle unfolds over restaurant delivery service restrictions

Uber filed an antitrust lawsuit against DoorDash in the California Superior Court, accusing the food delivery giant of engaging in anti-competitive behavior that allegedly stifles market competition and limits restaurant choices. The lawsuit highlights that DoorDash has been pressuring restaurant partners into exclusive agreements, prohibiting them from working with Uber’s competing delivery service. Uber claims that restaurants face substantial penalties—sometimes amounting to millions of dollars—if they choose to collaborate with Uber Direct or other competing platforms. The company further alleges that DoorDash manipulates search rankings to disadvantage restaurants that refuse exclusivity.

Uber argues that these business tactics not only harm fair competition but also restrict restaurants from expanding their delivery options. According to Uber’s legal team, DoorDash currently dominates first-party restaurant orders in the United States, handling over 90% of direct online orders placed through restaurant websites and apps. By monopolizing this segment, DoorDash effectively prevents competitors from gaining a foothold in the food delivery market.

In response, DoorDash has strongly denied the allegations, calling them baseless and an attempt by Uber to deflect from its own struggles in the competitive food delivery industry. A spokesperson for DoorDash stated that the company is committed to providing superior services to customers, restaurants, and delivery drivers, and that the lawsuit is an effort to stifle its success rather than promote fair competition.

This lawsuit underscores the intensifying competition in the U.S. food delivery market, which has grown significantly since the pandemic. Both Uber and DoorDash have expanded their operations beyond traditional third-party food delivery services. Uber operates ‘Uber Direct,’ while DoorDash runs ‘DoorDash Drive-on-Demand,’ both of which offer white-label delivery solutions for restaurants. These services allow customers to place orders directly through restaurant websites, with delivery fulfilled by a third-party provider. The outcome of this legal dispute could have significant implications for the future of the food delivery industry, shaping how delivery platforms interact with restaurant partners and how regulatory bodies approach competition in the sector.

Uber has requested a jury trial but has not disclosed the exact financial damages it seeks. Industry analysts believe the case could influence future regulations governing food delivery services, particularly concerning how delivery platforms negotiate with restaurants.

The broader U.S. food delivery sector has already been under scrutiny due to high commission fees and restrictive contractual agreements imposed on restaurants. Several cities have attempted to regulate the industry by capping delivery and advertising fees, sparking legal challenges from delivery companies that argue such measures violate free market principles. This legal battle between Uber and DoorDash emerges against this backdrop, and its outcome may further shape policies on fair competition and business practices in the restaurant delivery market.