Uber Sues DoorDash for Anticompetitive Behavior

Uber delivered a lawsuit to DoorDash last week. According to filed paperwork in California, Uber alleges the rival delivery app company coerced restaurants into exclusive agreements.

DoorDash purportedly threatened to raise commission rates if a restaurant also used Uber Eats to manage orders. The commission rate is the amount an eatery pays delivery app companies for advertising.

“DoorDash’s coercive tactics reduce restaurant-customer and consumer choice, resulting in higher prices, lower-quality service, and decreased innovation,” the delivery company stated in the complaint, per The Wall Street Journal. 

Unsurprisingly, DoorDash denies any wrongdoing and claims the allegations have no merit. Simply put, DoorDash said competing delivery apps just can’t offer the same benefits and service.

“Their claims are unfounded and based on their inability to offer merchants, consumers, or couriers a quality alternative,” DoorDash said, responding to the lawsuit.

It was during the COVID-19 pandemic that delivery services really took off. However, ever since stay-at-home orders were lifted in many areas, delivery app companies have struggled to remain profitable.

DoorDash ultimately survived and thrived by expanding services. It campaigned to attract customers looking for more than a hot meal, making deals with large grocery stores and chain retailers to deliver household items and food staples to consumers.

Meanwhile, Uber Eats limped along as just an extension of Uber’s larger ride-share business. Ever since its launch, more than 1 million companies in 11,000 cities have signed on with the app for delivery services.

Why Did Uber Sue DoorDash?

Uber’s lawsuit came about after several alleged incidents when DoorDash interfered with delivery service agreements. In 2024, a sizable, unnamed restaurant conglomerate partnered with Uber for exclusive delivery services. However, the deal was canceled by the restaurant group after DoorDash supposedly threatened to increase commission rates.

In an alleged similar instance, DoorDash attempted to raise commission rates for a different restaurant by 30% per order. Purportedly, DoorDash told the restaurant that it would lose thousands of dollars if it worked with the other delivery company.

Should Uber prevail, DoorDash could be on the hook for unspecified monetary damages as well as an immediate cease of accused practices. Reportedly, the delivery app company’s business was significantly damaged by DoorDash’s alleged unfair practices, leading to decreased revenue and stunted market growth.

The latest figures estimate that DoorDash controlled 63% of the national food delivery market in 2024. Uber Eats was a distant second at 25%. Grubhub, which was sold last year to Wonder Group, only held 6%.