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Uber accused DoorDash of stifling competition. DoorDash says merchants just like them more.

DoorDash and Uber Eats stickers in a New York City cafe window.
DoorDash asked the California Superior Court to dismiss a lawsuit Uber filed in February.

Beata Zawrzel/NurPhoto/Getty Images

  • DoorDash asked the California Superior Court to dismiss Uber's lawsuit on Friday.
  • In February, Uber accused DoorDash of inflating costs and other anti-competitive business practices.
  • "Instead of competing through innovation, Uber has resorted to litigation," DoorDash says.

DoorDash wants Uber's anti-competition lawsuit tossed by the California Superior Court, saying the litigation is a "cynical and calculated scare tactic."

DoorDash filed the motion alongside a press release on Friday.

"It's disappointing behavior from a company once known for competing on the merits of its products and innovation," DoorDash, which tops the online food delivery market in the United States, wrote in the release.

Uber filed a complaint against DoorDash in February, accusing the company of anti-competitive business practices that inflated prices for restaurants and customers. The complaint said DoorDash "devised and is engaged in an unlawful scheme to stifle competition with Uber Eats, its closest rival."

Uber accused DoorDash in the complaint of leveraging restaurants' dependence on its app to secure near-exclusive or exclusive use.

"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," Uber's complaint said.

Doordash
DoorDash denied the accusations made in Uber's lawsuit in a motion on Friday.

Emily Dulla/Getty Images for DoorDash

Earnest Analytics reported in February that DoorDash dominated the food delivery market with a 60.7% share. Uber Eats followed at 26.1% and Grubhub at 6.3%.

DoorDash denied Uber's accusations in the motion on Friday.

Among its arguments, DoorDash said Uber is trying to "shoehorn its competition claims" by using a statute that typically applies to "disputes regarding employee non-compete provisions."

"Uber's lawsuit should be seen for what it is: sour grapes from a competitor that has been told by merchants, time and again, that they prefer working with DoorDash," the company's motion said. That's not the basis for a lawsuit โ€” it's just fair competition. The Court should sustain DoorDash's demurrer."

Uber told Business Insider in a statement that it won't back down.

"It seems like the team at DoorDash is having a hard time understanding the content of our complaint. When restaurants are forced to choose between unfair terms or retaliation, that's not competition โ€” it's coercion. Uber will continue to stand up for merchants and for a level playing field. We look forward to presenting the facts in court," an Uber spokesperson said.

A lawyer for DoorDash told BI, "Uber appears to be upset that they're losing in the marketplace because DoorDash has better and more innovative products, but that isn't a legitimate basis for a lawsuit."

"Uber's legal claims are meritless and should be dismissed," the lawyer said.

DoorDash isn't Uber's only legal battle this year. In April, the Federal Trade Commission sued Uber, saying the company added users to its Uber One subscription program without their consent.

The FTC said in a press release that the company "failed to deliver promised savings" and made it tough for users to cancel the service.

Uber CEO Dara Khosrowshahi told Semafor on Friday that the FTC's lawsuit was a "head-scratcher."

"We make it incredibly easy to sign up for Uber One, the value is enormous, the renewal rates are over 90%. It's a great product," Khosrowshahi said. "We allow you to cancel. We allow you to pause. That one was a head-scratcher for me."

Read the original article on Business Insider

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Roblox could be the latest company to follow Elon Musk out of Delaware

A picture of Roblox cards
Roblox shareholders will vote in May on a proposal to leave Delaware and reincorporate in Nevada.

Jakub Porzycki/NurPhoto via Getty Images

  • Roblox could move its corporation from Delaware to Nevada.
  • Shareholders will vote on the possible move in May.
  • Some companies have followed Elon Musk's decision to reincorporate his companies outside Delaware.

Delaware's reputation as the country's most corporate-friendly state has taken another hit.

Roblox is now the latest company to propose leaving Delaware, according to a note it sent to its shareholders this week. Numerous other major corporations โ€” like Dropbox and Bill Ackerman's Pershing Square Capital Management โ€” have also said in recent months they planned to leave Delaware. Meta, too, is rumored to be considering a move.

The trend began with Elon Musk, who moved Tesla and SpaceX out of Delaware last year after a Delaware judge sided with some Tesla shareholders to block Musk's $55 billion pay package.

In the note, Roblox's board of directors, who have already approved the move, urged shareholders to support the proposal.

"We believe that Nevada's corporate law framework and statutory regime aligns with Roblox's culture of innovation, values, and mission to connect the world with civility and optimism," the company said in its note to shareholders. "It also allows us to continue to build shareholder value by providing a supportive, predictable environment."

The ongoing exodus is devastating for Delaware, which has long been considered the country's most business-friendly state. According to Delaware's government, the state is home to some 2.2 million registered entities, which contribute millions to its revenue. In 2024, more than 80% of IPOs in the United States were incorporated in Delaware.

Delaware Gov. Matt Meyer has moved to make changes to address concerns.

"The fact is Delaware is the best location in the world for a company to incorporate and that's thanks to our legal expertise dating back to 1792," Meyer told Business Insider in February. "But let's be clear: If any entity leaves Delaware, we're going to work to win them back."

Meyer said the balance of shareholder and management rights is one of the areas the state intended to address. "We're cognizant that there may be some things that need to change. We're going to work on them," he said.

On March 25, the governor approved a number of proposed changes. But for some corporations, those fixes might be too little too late.

A Roblox spokesperson told BI the company believed reincorporating in Nevada could "provide a stable and predictable legal environment in which the Company can focus on innovation and growth."

Read the original article on Business Insider

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