Jul 16, 2020 - Economy

Instacart sues Uber's grocery delivery service

Photo of Instacart shopper phone scanning blueberries and a cart with groceries.

Photo: Denver Post Photo / Cyrus McCrimmon

Instacart has filed a lawsuit against Cornershop, a grocery delivery company recently acquired by Uber, accusing the company of scraping material including thousands of images from Instacart's product catalog as it expanded to the U.S.

The big picture: Grocery delivery has been in the spotlight during the pandemic as Americans stay home much of the time, opting for delivery services instead. The boom in demand has also helped Instacart reportedly turn a profit for the first time.

Flashback: Last year, Uber agreed to acquire Cornershop, a Latin American grocery delivery service. It debuted in the U.S. in May, starting in Dallas and Miami.

  • Cornershop recently faced backlash from US grocery retailers that learned the company was offering delivery services from their stores without their permission, according to The Information.

What they're saying:

Today, Instacart filed a lawsuit against Cornershop after the company failed to comply with a cease and desist demanding it stop stealing our catalog and using our misappropriated intellectual property. The lawsuit makes clear that Cornershop is engaging in a systematic effort to illegally steal Instacart’s proprietary catalog while attempting to conceal that theft for its own commercial benefit.
— Instacart spokesperson
Instacart is facing a new challenge in the US from a Chilean upstart, and it’s unfortunate that their first move is litigation instead of competition. Cornershop will be responding to this complaint but won’t be deterred in bringing grocery delivery to more customers in the US.
— Uber spokesperson
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