Uber files lawsuit against DoorDash in California over alleged anticompetitive practices

USA – Ride hailing and food delivery platform Uber Technologies has filed a lawsuit in California against DoorDash, accusing the company of anticompetitive practices that lead to higher costs for both restaurants and consumers.

A lawsuit was filed in the state’s superior court on February 14, 2025, alleging that DoorDash engaged in anti-competitive practices to undermine Uber’s business.

According to Uber’s complaint, DoorDash has been pressuring restaurants by threatening to raise commission rates if they partner with competitors like Uber Eats.

Uber claims this strategy has led to significant financial losses and hindered its growth in the direct delivery sector via Uber Direct.

The lawsuit asserts that DoorDash’s actions have forced restaurants to abandon agreements with Uber. One example cited is a large restaurant chain that ended its direct delivery contract with Uber after DoorDash announced a planned increase in commission rates.

Uber also accuses DoorDash of attempting to raise commission rates by 30% for another restaurant, warning that partnering with Uber would lead to higher fees on DoorDash’s platform.

In response, DoorDash dismissed Uber’s claims as baseless.

A company spokesperson stated that Uber’s case lacked merit, attributing the lawsuit to Uber’s failure to offer a better alternative for merchants, consumers, or couriers.

The legal dispute comes at a time when DoorDash has seen significant growth. In the fourth quarter of 2024, DoorDash reported a 19% year-on-year increase in total orders and a 21% rise in its marketplace gross order value, reaching US$21.3 billion.

During the same period, Uber reported a 60% year-on-year growth in its Uber One membership program, with 30 million members.

The lawsuit also occurs amid a period of financial struggle for food delivery companies post-pandemic.

Just Eat Takeaway.com, for instance, has decided to sell Grubhub for US$650 million, a fraction of the US$7.3 billion it paid for the platform in 2020.

The buyer, Wonder Group, a New York-based company, will acquire Grubhub for US$150 million in cash and US$500 million in senior notes.

This legal battle highlights the challenges and competitive tensions within the online food delivery sector.

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