Uber sues DoorDash, accusing its food delivery rival of inflating costs and anti-competitive business practices

Core Viewpoint - Uber Technologies, Inc. has filed a lawsuit against DoorDash, Inc. alleging anti-competitive practices that inflate costs for restaurants and customers [1][2]. Group 1: Allegations and Impact - Uber claims that DoorDash has created an unlawful scheme to suppress competition, making it difficult for restaurants to partner with multiple delivery services [2]. - The lawsuit states that DoorDash's practices have resulted in millions of dollars in lost revenue for Uber due to terminated and potential revenue streams [2][6]. - Restaurants reportedly feel pressured by DoorDash's market dominance, with some describing the situation as being under a "gun to their head" [2]. Group 2: Market Position and Performance - As of November, DoorDash holds a 62.7% share of the U.S. delivery market, while Uber Eats has 25% and Grubhub has 6.2% [3]. - DoorDash has been reported to lead in customer satisfaction, outperforming competitors in delivery time and service quality [3][4]. - In Q3 2024, DoorDash experienced an 18% increase in orders year-over-year, with revenue rising 25% to $2.7 billion [5]. Group 3: Industry Concerns - There are ongoing criticisms regarding the high fees charged by delivery apps, which can double the cost of meals compared to menu prices, impacting restaurant margins [5]. - Uber's leadership has expressed concerns that DoorDash's tactics limit restaurant options and punish them for seeking better alternatives [6].