Instacart is suing its Uber-owned rival

The grocery delivery service is accusing Cornershop of copyright infringement and more
Photo: Instacart

Instacart has filed a lawsuit against Cornershop alleging that the Uber-owned rival has "brazenly stolen" Instacart's IP and is using its intellectual property.

Cornershop was founded in Chile in 2015 and is one of the largest grocery delivery services in Latin America.  It also has a major presence in Canada through partnerships with Walmart, Metro and Organic Garage, and recently announced plans to launch in Miami and Dallas.

On Instacart's website, it accuses Cornershop of the following:

  • Stealing thousands of Instacart copyrighted images to use across Cornershop's app and website--many of which were developed by Instacart's team using its own Mobile Photo Studio.

  • Modifying file names in order to conceal the ownership of the images.

  • Posting jobs for engineers with "advanced scraping" and other skills that suggest taking and reusing content is part of the company's a strategic efforts.

"Upon discovery of this activity, we immediately sent Cornershop a cease and desist and, when they failed to comply, we were forced to bring this lawsuit," Instacart writes. "We don’t take the decision to litigate lightly, but believe today’s actions are necessary to protect our business and our retail partners from Cornershop’s ongoing theft."

The lawsuit has been filed in the U.S. District Court for the Eastern District of Texas. A spokesperson for Uber provided Canadian Grocer's sister publication Progressive Grocer with the following statement:

"Instacart is facing a new challenge in the U.S. 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 U.S."

Earlier this month, Uber also announced its intention to buy delivery service Postmates for approximately US$2.65 billion in an all-stock transaction.

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