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Ride - share giant Uber file away a causa Friday against DoorDash , accusing the livery outfit of asphyxiate competition by intimidating eating house owners into exclusive deals .
Uber allege in the lawsuit , filed in Superior Court of California , that its chief rival bullied restaurants into only working withDoorDash . Uber claim that DoorDash , which holds the largest ploughshare of the food delivery market in the U.S. , threatens restaurants with multimillion - dollar penalty or the removal or demotion of the businesses ’ position on the DoorDash app .
Specifically , Uber claims DoorDash pressures eating house to strike sole or nigh - exclusive agreements for first - party saving Robert William Service , mean that DoorDash insists on only handling order placed through eating house ’ own websites , says Uber .
“ Uber ’s cause has no merit , ” said a DoorDash spokesperson in an email to TechCrunch on Friday . “ Their claims are unfounded and based on their inability to offer merchant , consumers , or couriers a quality alternative . ”
DoorDash and Uber Eats are best known for their several apps to connect restaurant , consumers and gig economy workers . Consumers use the apps to discover and govern food like pizza , bollock rolls , or pad thai from eatery . A gig economy worker then pluck up and delivers the food to the consumer .
But the two company also contend with their own livid - label manner of speaking service – called Uber Direct and DoorDash Drive on - requirement – which both launch in 2020 . These services are gaudy for restaurants , allow patrons to govern now from the eating place ’ own apps and websites , while Uber and DoorDash manage the couriers behind the picture .
Uber lay claim in its suit that DoorDash manage first - party speech for more than 90 % of the largest enterprise restaurants in America , and it aver DoorDash used anticompetitive practices to gain ground the market .
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“ More than 1 million merchants spouse with Uber chuck because we ’ve help oneself them to strive more customers and provide them the freedom to settle how they require to grow their business concern with delivery , ” Sarfraz Maredia , head teacher of the Americas for obstetrical delivery at Uber , said in an emailed statement . “ We ’ve more and more heard complaints from restaurants that DoorDash ’s tactics are confine that freedom and punishing them for seeking better selection . We desire this filing puts an end to those unfair practices so that restaurants can choose what ’s best for them without fear of penalty or requital . ”
In one illustration from the case , Uber tell that an unnamed “ significant restaurant caller ” told the companionship it would not move forward with a long - planned rollout of Uber Direct across several of its eatery brands . The rationality , Uber claim , is because DoorDash allegedly threatened to increase the rates it bear down the restaurant fellowship to use DoorDash ’s third - company delivery table service if it continued to habituate Uber Direct .
Uber says this was not a one - off event , but rather that multiple customer have told the company they feel “ like they have a ‘ gun for hire to their head , ’ that DoorDash is a ‘ monopolist , ’ and that they are being bullied by DoorDash . ”
Uber has requested a jury test ; the companionship did not specify the amount of damages in the complaint . However , Uber lay claim these anticompetitive practices have be the company “ millions of dollars in receipts ” and also restricted the growth of Uber Direct .
