Instacart Continues Uber Cornershop Grocery Delivery Service

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On Thursday, Instacart filed a lawsuit against Cornershop, a new grocery delivery competitor in the United States, for allegedly stealing thousands of its copyrighted and licensed images, as well as product descriptions and price data.

“Today Instacart has taken legal action against Cornershop after the company has failed to comply with a ceasefire and refrain from asking it to stop stealing our catalog and using our intellectual property diverted, “Instacart said in a statement to CNN Business. “The lawsuit clearly shows that Cornershop is making a systematic effort to illegally steal the catalog that owns Instacart while trying to hide this theft for its own commercial benefit. ”

In a statement, Uber called the Instacart trial an attempt to stifle new competition.

“Instacart faces a new challenge in the United States from a Chilean, and it is unfortunate that their first move is litigation instead of competition,” said Uber spokesperson Noah Edwardsen. , in a press release to CNN Business. “Cornershop will respond to this complaint, but will not be deterred from offering grocery delivery to more customers in the United States. “

Uber announced last year that it will acquire Cornershop, a Latin American grocery delivery start-up. (The agreement is still pending regulatory approval in Mexico.) Cornershop has since launched operations in Texas and Florida. In a recent call for results, Uber described the acquisition as one of the elements of its opportunity to grow in the grocery category, with its Eats platform.

Uber, which started as a support service, has long tried other categories, including meal delivery. But these efforts have undoubtedly taken on a new urgency as the pandemic simultaneously reduced demand for its main activity of rides, while causing a skyrocketing demand for meal deliveries.

Meanwhile, Instacart’s business exploded during the pandemic. Investors recently invested $ 325 million in the service, bringing its valuation to nearly $ 14 billion.

The lawsuit, which includes side-by-side comparisons of some alleged stolen images, estimates that Instacart has spent at least $ 17 million since 2015 to create and maintain its catalog.

“By stealing and misusing Instacart data, Cornershop evaded the substantial investments required of legitimate competitors in this industry,” reads the lawsuit, which was filed with a federal district court in Texas.

In a blog article about the lawsuit, Instacart said, “While we welcome competition and innovation, what Cornershop does is illegal. “

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