Uber Eats to pay $10 million for listing Chicago restaurants without consent

Uber Eats to pay $10 million to restaurants in Chicago for listing them on the app without prior permission. Here’s more on the settlement.

All about Uber Eats v the City of Chicago

A $10 million settlement was reached between Uber and the City of Chicago after the firm listed local restaurants on Uber Eats and Postmates without consent. Cohen Milstein Sellers & Toll represented the city and stated over $5 million will go to the affected restaurants. Additionally, $1.5 million will go to the city for costs incurred during the investigation.

“Today’s settlement reflects the City’s commitment to creating a fair and honest marketplace that protects both consumers and businesses from unlawful conduct,” stated Lori Lightfoot. Lightfoot is the mayor of Chicago. “Chicago’s restaurant owners and workers work diligently to build their reputations and serve our residents and visitors. That’s why our hospitality industry is so critical to our economy, and it only works when there is transparency and fair pricing. There is no room for deceptive and unfair practices,” added the mayor.

More on the settlement

However, this is not the first time such an incident occurred. Door Dash and Grubhub were previously accused of piling up menus on their platforms. The platforms place an order on behalf of the customer. According to restaurants, this leads to customers ordering things that are no longer available or at prices that are outdated.

After the malpractice was discovered, the city approached Uber in September. The firm paid $3.3 million to restaurants where an extra 15 percent commissions were charged. Additionally, it dropped the restaurants added without permission. Uber Eats will be paying an additional $2.25 million following Monday’s order. However, this applies to restaurants that had to shell out extra commission fees. On th other hand, restaurants listed without permissions will receive $500,000.