Former Uber CEO Travis Kalanick’s latest venture, Picnic—a free delivery food service under his ghost kitchen company CloudKitchens—is in legal hot water with Bay Area salad chain Mixt.
Mixt sued Picnic, accusing it of reselling its meals without permission, slashing prices, and delivering warm salads, compromising food safety. The dispute has now moved to private arbitration.
CouldKitchens has had clashes with restaurant operators in the past, and this case adds to the growing scrutiny. The company has a $15 billion valuation and high-profile backers like Saudi Arabia’s sovereign wealth fund and Microsoft.