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ACCC investigates Uber Eats for exclusive deals
ACCC investigates Uber Eats for exclusive deals amid anti-competitive claims from rivals like Mitre 10 and Bunnings
ACCC investigates Uber Eats for exclusive deals amid anti-competitive claims from rivals like Mitre 10 and Bunnings
– The ACCC is investigating Uber Eats over exclusive deals with retailers like Bunnings, raising competition concerns.
– Smaller rivals claim these agreements limit their access and strengthen Uber Eats’ market dominance.
The ACCC has launched a preliminary investigation into Uber Eats regarding its exclusive deals with various retailers like Bunnings.Rivals allege these arrangements create anti-competitive conditions, limiting access for smaller delivery platforms.
Investigation launched
Uber Eats recently formed exclusive partnerships with food retailers and has entered non-traditional sectors like hardware.
These exclusive agreements have raised concerns among smaller competitors about the growing dominance of Uber Eats in the online delivery landscape.
The issue escalated when Mitre 10 claimed its delivery trial with Uber Eats was undermined by Uber Eats’ deal with Bunnings.
Mitre 10 reported that Bunnings, a subsidiary of Wesfarmers, used its market power to obstruct Mitre 10’s access to Uber Eats.
Bunnings denied any wrongdoing, asserting that competition in the sector remains robust.
The ACCC has indicated it is gathering information and assessing Uber Eats’ contractual agreements with local businesses.
An ACCC spokesperson confirmed awareness of concerns raised by Mitre 10 but withheld further comments as the investigation continues.
A representative from Metcash, which owns Mitre 10, expressed support for the ACCC’s inquiry, pledging cooperation during their investigation.
Credit: UberEats
Mitre 10 has since turned to rival DoorDash for delivery options.
While exclusive arrangements can breach competition law, the impact is evaluated on a case-by-case basis.
Concerns about Uber Eats’ market dominance have surged due to its exclusive contracts and significant advertising campaigns featuring celebrities.
The situation intensified when Menulog exited the Australian market, redirecting customers to Uber Eats.
Uber Eats, boasting around 4.5 million active users, remains the leading player in the online delivery market, while DoorDash trails with less than 5%.
Uber Eats declined to comment on the ACCC’s investigation.
Previously, the ACCC forced Uber Eats to amend its contract terms with restaurants following a separate investigation in 2019.