Uber Technologies has filed a lawsuit against DoorDash, accusing the dominant food delivery service of engaging in anticompetitive practices that harm both restaurants and customers. The lawsuit, lodged in California Superior Court on February 14, 2025, alleges that DoorDash coerces restaurants into exclusive or preferred contracts for its services, such as DoorDash Drive, its white-label delivery platform. Uber claims these practices stifle competition, inflate costs, and limit restaurants’ ability to work with multiple delivery providers.
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Key allegations in the lawsuit include
Exclusive Contracts
Uber asserts that DoorDash pressures restaurants to use its services exclusively by threatening higher commission rates, multimillion-dollar penalties, or reduced visibility on the DoorDash app if they partner with competitors like Uber Eats or Uber Direct.
Market Dominance
DoorDash reportedly handles first-party deliveries for over 90% of the largest restaurant chains in the U.S., including major brands like Burger King and Papa Johns. This dominance allegedly allows DoorDash to impose restrictive terms on restaurants.
Economic Impact
Uber claims these tactics have cost it millions in lost revenue and hindered the growth of its Uber Direct service. Restaurants have reportedly described feeling “bullied” and “powerless” to resist DoorDash’s demands.
DoorDash, which controls approximately 63% of the U.S. food delivery market compared to Uber Eats’ 25%, denies the allegations. A spokesperson for DoorDash called the lawsuit “meritless,” arguing that Uber’s claims stem from its inability to offer a competitive alternative.
This legal battle highlights ongoing tensions in the highly competitive food delivery industry, where companies vie for market share through both third-party platforms (like apps) and first-party services (where restaurants manage orders through their own websites). Uber seeks damages and a court order compelling DoorDash to change its business practices to restore what it describes as fairness and freedom of choice for restaurants.