UPDATE: This story has been updated to include a statement from DoorDash as well as details on the hearing.
Uber’s lawsuit against DoorDash over delivery contracts will continue after a judge struck down DoorDash’s motion to dismiss the case.
A California Superior Court judge on Friday gave the case the green light, ruling that five of DoorDash’s six objections did not pass legal muster. On the one objection that was sustained, the court is giving Uber a chance to revise its argument while moving ahead with the rest of its case.
Uber sued DoorDash in February, alleging that its chief rival uses illegal tactics to get restaurants to sign exclusive contracts for first-party delivery.
It cited testimony from more than a dozen restaurant brands that said they cancelled deals with Uber after DoorDash threatened them with higher rates or other penalties.
DoorDash fired back in April, calling the suit meritless and arguing that Uber resorted to a legal attack because it can’t compete with DoorDash otherwise.
DoorDash and Uber Eats are the first and second-largest restaurant delivery services in the U.S., respectively. And DoorDash dominates the market for first-party delivery, which refers to delivery orders that are placed directly through a restaurant’s website or app and fulfilled by third-party couriers. According to the lawsuit, more than 90 of the 100 largest U.S. restaurant brands have exclusive or preferred first-party delivery contracts with DoorDash.
In its April motion, DoorDash argued that Uber’s case lacked details and other elements to support claims that it had violated antitrust laws. But a judge ruled that Uber’s argument is strong enough to move forward to the discovery phase, in which the two sides will exchange evidence ahead of a trial.
“We’re pleased the court saw through this attempt to hide from the facts and dodge accountability,” an Uber spokesperson said in a statement. “Restaurants rely on Uber Eats to grow their businesses with transparency and freedom of choice, and they know that being forced into unfair terms or threatened with retaliation isn’t competition — it’s coercion. We look forward to putting Dash’s tactics on trial.”
It can be difficult to have a lawsuit dismissed, and the judge's ruling is not an indication of how the court will ultimately rule in the case. According to a DoorDash spokesperson familiar with the hearing, the judge discussed at length the challenges that Uber will face in proving its argument.
In a statement, DoorDash said it remained confident in its position and will continue to vigorously defend itself against Uber's claims. "We believe that as this case plays out, the facts will make clear that this lawsuit is nothing more than a scare tactic from a company struggling to innovate and seeking to avoid real competition,” the spokesperson said.
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