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

Uber Technologies, Inc. on Friday filed suit against its food delivery rival, DoorDash, Inc., accusing DoorDash of anti-competitive business practices that Uber says inflate costs for both restaurants and customers.

In the complaint, Uber alleges that DoorDash, the largest provider of restaurant delivery services in the United States, has "devised and is engaged in an unlawful scheme to stifle competition with Uber Eats," making it difficult and expensive for restaurants to partner with more than one delivery service and allowing the delivery giant to charge customers higher fees for "lower-quality service."

"Restaurants simply cannot afford to stand up to DoorDash, and find themselves powerless to choose the service or services that are best for their businesses in the market for first-party delivery," the complaint, reviewed by Business Insider, reads. "Uber's restaurant-customers have reported feeling like they have a 'gun to their head,' that DoorDash is a 'monopolist,' and that they are being bullied by DoorDash. But most restaurants have no meaningful option to resist DoorDash, given the power it wields through the DoorDash App in Third-Party Delivery."

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