DoorDash Moves to Dismiss Uber Lawsuit on Competition Claims
DoorDash has filed a motion in California Superior Court requesting the dismissal of a lawsuit initiated by Uber. The lawsuit alleges that DoorDash employs intimidation tactics to secure exclusive agreements with restaurant owners, thereby stifling competition.
DoorDash’s Defense
In a recent statement, DoorDash characterized Uber’s lawsuit as lacking substance. The company described the lawsuit as a “cynical and calculated scare tactic” from a “frustrated competitor” that is attempting to evade fair competition. DoorDash emphasized its commitment to fair practices and vowed to “vigorously” defend against the claims.
According to DoorDash, it competes “fiercely yet fairly” in the market, aiming to provide significant value to merchants. This assertion highlights the company’s approach to competition in the food delivery industry.
The Lawsuit Details
Uber’s lawsuit, filed in February, accuses DoorDash of leveraging its dominant position in the U.S. food delivery sector to threaten restaurants with extreme financial penalties or altered placement within the DoorDash application should they refuse to comply with exclusive deal requests.
Uber’s Response
Responding to DoorDash’s dismissal motion, Uber claimed that the essence of its complaint is being misunderstood. The company articulated its view of the situation in a statement sent to TechCrunch: “When restaurants are forced to choose between unfair terms or retaliation, that’s not competition — it’s coercion.” Uber reaffirmed its dedication to advocating for a fair market for merchants, expressing eagerness to present its case in court.
Next Steps in Legal Proceedings
A court hearing has been scheduled for July 11 at the San Francisco County Superior Court, where DoorDash’s motion will be reviewed. Uber, in its initial complaint, has requested a jury trial but has not disclosed the specific damages it seeks.
Other Developments
In separate news, Deliveroo confirmed that DoorDash has made a bid to acquire the European food delivery service for $3.6 billion, further expanding DoorDash’s ambitions in the competitive market.
