DoorDash has submitted a motion to the California Superior Court requesting the dismissal of a lawsuit filed by Uber, which accuses the food delivery giant of engaging in anti-competitive behaviour by pressuring restaurants into exclusive partnerships. The legal battle centres on claims that DoorDash’s tactics have hindered fair competition within the food delivery market.
The lawsuit, initiated by Uber in February, alleges that DoorDash threatens restaurants with substantial financial penalties or reduces their prominence on the DoorDash app if they refuse to enter near-exclusive contracts for delivery services.
Uber contends that these practices not only harm restaurants but also inflate costs for consumers and have resulted in significant revenue losses for Uber. According to market analytics firm Earnest Analytics, DoorDash currently holds more than 60% of the U.S. food delivery market share.
DoorDash has strongly denied the accusations, describing the lawsuit as “a cynical and calculated scare tactic from a frustrated competitor seeking to avoid real competition.” The company emphasises that restaurants choose to work with DoorDash because of the value and innovation it offers. DoorDash points to its pioneering first-party delivery service, DoorDash Drive, launched in 2016, which allows restaurants to fulfil orders placed directly on their own websites using DoorDash’s delivery network.
The company’s legal representatives argue that Uber’s claims are without merit, lacking concrete evidence such as specific contracts or terms that DoorDash allegedly breached. DoorDash accuses Uber of resorting to litigation as a strategy to suppress competition rather than competing through product innovation and superior service.
A spokesperson for DoorDash stated, “Instead of competing through innovation, Uber has resorted to litigation. Uber is trying to deter merchants from working with us and use legal threats to win business it hasn’t earned.” DoorDash has pledged to defend itself vigorously while continuing to focus on delivering exceptional value to both merchants and consumers.
The court hearing is scheduled for July 11 in San Francisco County Superior Court, marking a critical juncture in the ongoing rivalry between the two dominant players in the American food delivery sector. This case also shows the growing prominence of first-party delivery services, where restaurants use third-party couriers to fulfil orders placed directly through their own digital platforms—a market segment DoorDash has led since 2016, with Uber entering the space in 2020.
In a related development, DoorDash has recently made an offer to acquire Deliveroo, the leading European food delivery company, for $3.6 billion, signalling its intent to expand its international presence amid intensifying competition.