The delivery app will pay restaurants back for listing them without their consent and charging them excessively high commissions.
Eater Chicago. The settlement sets aside money to reimburse restaurants for actions that took away some of their profits, among other things. The news comes after a two-year investigation into Uber, which also owns Postmates.
“We are committed to supporting Uber Eats restaurant partners in Chicago and are pleased to put this matter behind us,” a spokesperson for Uber Eats said in a statement. The city of Chicago says that Uber listed unaffiliated restaurants on its platform without their consent and charged some establishments commissions that exceeded the 15 percent cap the city had set during the pandemic. To make up for some of that, $500,000 has been allotted for restaurants that were listed without their consent, and millions of dollars have been paid back to restaurants charged excessive commissions.
Chefs throughout the city have cheered the settlement, which sets a precedent for other apps such as DoorDash and Grubhub. Phillip Foss, the chef at Chicago’s fine-El Ideas, told Eater, “As much as I hate to see regulation, unfortunately, when nefarious intentions are at play, people are going to take advantage … They need to be held accountable when it takes place … It’s not just a segment of sales for restaurants at this point—it’s predominant in many cases, especially less-expensive eateries.
If this recent news is any indication, though, both Chicago and its restaurateurs are ready to see third-party delivery apps pay the price for their actions—quite literally.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Uber Eats and Chicago Reach $10 Million Settlement Over Deceptive PracticesUber avoids a lawsuit while DoorDash and Grubhub face the city’s legal teams in court (via eaterchicago)
Read more »
Editor's Picks: Our 22 Favorite Gift-Worthy Items of 2022Here are Serious Eats editors' top, gift-worthy picks for gadgets, gear, cookware, and more.
Read more »
Uber agrees to pay $10 million for listing Chicago restaurants without their consent, charging more than allowedUber Eats, Postmates allegedly listed restaurants without consent, and charged restaurants more than a 15% delivery-fee cap related to the coronavirus pandemic.
Read more »
Uber to pay millions to Chicago restaurants in settlement agreement with cityThe settlement results from a two-year investigation by the city into alleged misconduct on Uber’s meal delivery platforms.
Read more »