Food delivery giant DoorDash has filed a motion to dismiss a lawsuit brought by Uber, accusing the ride-hailing company of attempting to stifle competition through a "cynical and calculated scare tactic." The lawsuit, filed in February, alleges that DoorDash is intimidating restaurant owners into signing exclusive deals, thereby limiting competition in the market.
In a blog post on Friday, DoorDash vehemently denied the allegations, stating that it "competes fiercely yet fairly to deliver exceptional value to merchants." The company argued that Uber's lawsuit lacks merit and is merely a desperate attempt to avoid competing on the merits of its products and innovation. DoorDash has promised to "vigorously" defend itself against the lawsuit.
The lawsuit, filed in California Superior Court, accuses DoorDash of threatening restaurants with multimillion-dollar penalties or demotion on its app if they refuse to sign exclusive deals. Uber is seeking a jury trial but has not specified the amount of damages it is seeking. A hearing has been set for July 11 in San Francisco County.
Uber responded to DoorDash's motion to dismiss, stating that the company is having a hard time understanding the content of its complaint. "When restaurants are forced to choose between unfair terms or retaliation, that's not competition — it's coercion," Uber said in a statement. "Uber will continue to stand up for merchants and for a level playing field. We look forward to presenting the facts in court."
The rivalry between DoorDash and Uber has been intensifying in recent months, with both companies vying for dominance in the lucrative food delivery market. DoorDash currently holds the largest share of the market in the US, but Uber is rapidly expanding its Eats platform. The lawsuit is seen as a significant escalation in the competition between the two companies.
In a separate development, Deliveroo confirmed on Friday that DoorDash had offered to buy the European food delivery company for $3.6 billion. The deal, if successful, would significantly expand DoorDash's presence in the global market and give it a stronger foothold against Uber.
The outcome of the lawsuit and the potential acquisition of Deliveroo will have significant implications for the food delivery market. If DoorDash is successful in defending itself against the lawsuit, it could cement its position as the market leader. However, if Uber's allegations are proven, it could lead to a significant shift in the market dynamics and potentially pave the way for new entrants.
As the food delivery market continues to evolve, one thing is clear – the competition between DoorDash and Uber is only going to get fiercer. With billions of dollars at stake, the outcome of this lawsuit and the potential acquisition of Deliveroo will be closely watched by industry observers and consumers alike.