From PC Mag: Uber has sued DoorDash, accusing the online food delivery company of engaging in anti-competitive practices.
As reported by The Wall Street Journal, the complaint was filed in the Superior Court of California on Feb. 14. Uber says DoorDash has been forcing restaurants to accept it as an exclusive delivery partner or face consequences, such as multi-million dollar penalties or removal/demotion from the app.
Uber Eats and DoorDash both offer third-party and first-party food deliveries. Third-party deliveries occur when customers place orders from a food delivery app, and first-party deliveries occur when customers order directly from a restaurant’s website or app and have the food delivered by a partner chosen by the restaurant. Uber’s case concerns first-party deliveries.
According to the lawsuit, DoorDash controls 50% of all third-party and 90% of all first-party deliveries in the US. It is using this position to lock exclusive first-party agreements with restaurants and ensure it “gets first access to orders, and other delivery-solution providers like Uber Direct receive orders only if Drive On-Demand [DoorDash] does not accept them, even if these other providers could deliver more quickly and/or at a lower price.”
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