Fideres, a global economic consultancy, has released a report exposing the anti-competitive effects of DoorDash’s algorithm-driven pricing strategies. The antitrust investigation highlights how DoorDash’s de facto “Platform Most Favored Nation” (PMFN) clauses enforce price parity across delivery and dine-in menus, compelling restaurants to raise prices universally.
Dominating 67% of the U.S. meal delivery market, DoorDash penalizes restaurants that do not offer price parity, leveraging rankings and visibility tools. Restaurants risk reduced visibility if they adjust delivery prices to counteract the platform’s 15-30% commission fees. This strategy pressures restaurants to inflate dine-in prices, impacting consumers across the board.
Fideres emphasizes that this system limits competition and burdens both restaurant owners and customers with higher costs. Without PMFN clauses, platforms could compete on commissions, driving prices down.
For more information, visit Fideres Research.
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