Uber to Pay $5 million to Chicago Restaurants Without Consent
- Chicago, for example, enacted delivery fees caps in response to the pandemic.
- Chicago investigated Uber Eats, claiming that they violated these caps and listed restaurants without consent.
- Today, Uber and the City announced a $10 Million Settlement. DoorDash is still being sued.
Uber Eats and Postmates are paying for following the lead of DoorDash, one of their chief competitors.
Uber’s two apps have been valued at $10 million settlementAn investigation by Chicago found that they had listed restaurants on their food delivery platforms with no consent. They also violated the city fee-cap laws, which were enacted during the pandemic. A Monday agreement was announced.
One of the strategies that worked was DoorDash win the food delivery war was adding hundreds of restaurants to its app without permission. Restaurants were furious at the policy, and many went public on social networking when it happened. In-N-Out sued DoorDash as early as 2015 The delivery company was accused of listing the private burger chain without consent.
DoorDash’s rapid growth of US market share was helped by the rapid growth of restaurant listings. Uber Eats is a rival. GrubhubThey added restaurants without their consent.
The settlement is the result of a probe Chicago launched two years ago against Uber Eats. Uber Eats was investigating allegations that the app was listing restaurants without consent and charging marketplace fees above the city’s 15% limit.
Uber Eats spokesperson stated that the delivery company was satisfied with today’s settlement.
In a statement to Insider, the spokesperson stated that Uber Eats Chicago partners are important to them.
In a press release, the city stated that Uber will pay more than $5 million to Chicago restaurants that were not allowed to be listed and that paid fees above 15%. Some of those funds were already paid by Uber Eats last year, including $3.3 million in refunded marketplace fees.
Mayor Lori Lightfoot said that “Today’s settlement reflects our commitment to creating a fair, honest marketplace that protects both customers and businesses from unlawful behavior.” “Chicago’s restaurateurs and workers work hard to build their reputations while serving our residents and visitors. This is why the hospitality industry is so important to our economy. Fair pricing and transparency are key to its success. There are no opportunities for unfair or deceptive practices.
After the pandemic struck, several major US cities, including San Francisco, New York City, Los Angeles, ChicagoSeattle and California enacted fee caps in order to protect profits of restaurants that rely solely on deliveries to survive in-restaurant dining losses. California also passedA law that made it illegal for delivery apps not to list restaurants on their platforms was put into effect in 2021.
Separately, last Year Chicago filed a lawsuit against DoorDash and GrubhubUnfair business practices are being accused. DoorDash was, for instance, accused of using tips to pay its own employees. according to the lawsuit.
The DoorDash and Grubhub lawsuits Activities will not be suspended. According to a representative of the city, a hearing is scheduled for December 13.
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