December 05, 2022

Uber avoids a lawsuit while DoorDash and Grubhub face the city’s legal teams in court

Last year, the city of Chicago sued both DoorDash and Grubhub, accusing the third-party delivery couriers in separate filings of illegal business operations. Allegations include accusing Grubhub of ignoring the city’s pandemic emergency fee cap and both platforms for listing restaurants on ordering platforms without their consent.

Somehow, Uber Eats escaped the city’s legal fury, but now the city of Chicago has revealed that it has been working with the company on an out-of-court settlement. On Monday morning, the city announced a $10 million settlement with Uber Eats, which also owns Postmates. The settlement includes $500,000 set aside for restaurants listed on the platforms without their consent. The city has established a website to determine eligibility. The deadline to file is January 29 and payments will be made by March 1.

This concludes a two-year investigation of Uber, according to a release.

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That topic continues to be an issue for Chicago restaurants. Last week, Smoque BBQ and Brown Sugar Bakery went public as they were victims of a new scam in which their DoorDash listings were taken down and replaced by fraudulent listings. Customers using those listings never got their food as the orders never went to the restaurants they were attempting to order from. Instead, another party was paid for the orders. DoorDash never checked in with the restaurant before they made changes to the listing. The law firm of Cohen Milstein Sellers & Toll and Chicago’s law department are pursuing cases against DoorDash and Grubhub. The same legal pair partnered to work on the Uber settlement.

Read on Eater.