Uber Agrees to Pay $10 Million for Listing Chicago Restaurants Without Their Consent, Charging More Than Allowed, MarketWatch
December 05, 2022
The City of Chicago has reached a $10 million settlement with Uber Technologies Inc. stemming from allegations that Uber Eats and Postmates listed restaurants on their platforms without consent, and that restaurants were charged more than legally allowed.
Uber, which owns Postmates, and Chicago reached the deal after a two-year investigation by the city, the mayor’s office announced Monday. Chicago put in place an emergency 15% delivery-fee cap related to the COVID-19 pandemic, and is suing other delivery-app companies for not living up to that law and other local rules meant to protect restaurants and consumers.
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Chicago sued Uber competitors DoorDash Inc.and Grubhub last year, alleging deceptive fees and predatory practices that include behavior similar to some of the allegations against Uber. For example, the lawsuits allege that the companies cause problems for nonpartner restaurants when they scrape information about them online and don’t verify their accuracy. The lawsuit against DoorDash is in the discovery process, while there will be a hearing in the suit against Grubhub next week, according to Betsy Miller, partner at Cohen Milstein Sellers & Toll, the law firm working with the city on the case.