Uber Takes Legal Action Against DoorDash

Uber Technologies, Inc. filed a lawsuit against DoorDash, Inc. on Friday, accusing its rival of anti-competitive practices that allegedly cost Uber Eats millions in revenue. The lawsuit claims DoorDash inflates costs for restaurants and consumers while making it difficult for businesses to partner with multiple delivery platforms.

Uber’s Allegations Against DoorDash

Uber alleges that DoorDash holds a dominant market position—controlling 62.7% of the U.S. delivery market—and uses its power to pressure restaurants into exclusive agreements. The complaint states that DoorDash’s tactics prevent fair competition, making it expensive and difficult for restaurants to work with alternative services like Uber Eats.

“Restaurants simply cannot afford to stand up to DoorDash,” the lawsuit claims, with some businesses feeling like they have “a gun to their head.”

DoorDash Rejects Uber’s Claims

DoorDash dismissed the lawsuit as “meritless,” arguing that Uber’s struggles are due to its inability to provide a competitive alternative. A 2024 mystery shopper report from Intouch Insight found that:

• DoorDash led in customer satisfaction, promotions, and accurate deliveries.
• DoorDash’s average delivery time was 26 minutes, faster than Uber Eats (38 minutes) and Grubhub (35 minutes).

Rising Fees in Food Delivery Services

While demand for third-party food delivery remains high—DoorDash reported an 18% rise in orders in Q3 2024—both customers and restaurants have criticized the high fees imposed by delivery apps. Some restaurants claim these fees cut too deeply into their margins, limiting their ability to remain profitable.

Uber Calls for Policy Changes in the Industry

Uber’s Head of the Americas for Delivery, Sarfraz Maredia, stated that many restaurants feel punished for seeking alternatives. Uber hopes the lawsuit will end these restrictive practices, ensuring restaurants have the freedom to choose their preferred delivery platform without fear of retaliation.

The Future of the Legal Battle

With DoorDash dominating the market, this lawsuit could reshape the third-party delivery industry. If Uber wins, it may lead to stricter regulations for delivery platforms, potentially lowering costs for restaurants and consumers.