Uber Eats Reaches $10 Million Settlement With Chicago

Restaurants listed on the platform without their consent can submit a claim with the city by January 29.

December 06, 2022

ALEXANDRIA, Va.—Uber Technologies has reached a roughly $10 million settlement with the city of Chicago for listing restaurants on the food-delivery app without their consent and charging them excessive commissions, The Wall Street Journal reports.

The settlement, which concludes a city-led investigation, includes $3.3 million Uber previously paid to Chicago eateries that were listed on Uber’s meal delivery app—or Postmates, which Uber acquired in 2020—without their consent.

“Today’s settlement reflects the City’s commitment to creating a fair and honest marketplace that protects both consumers and businesses from unlawful conduct,” said Mayor Lori Lightfoot. “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.”

During the COVID-19 pandemic, Chicago capped emergency fees at 15% for food delivery services as indoor dining was shuttered. The city of Chicago investigation found that the food ordering and delivery platforms charged fees that exceeded that cap.

Josh Gold, senior director of public policy at Uber, said the company is “pleased to put this matter behind us” and “committed to supporting” its restaurant partners, the Chicago Sun Times reports.

The city of Chicago is offering help to affected restaurants who were listed on Uber Eats or Postmates without their written consent. Those businesses can submit a claim for a portion of the settlement proceeds by completing a form and electronically signing the attestation on or before January 29, 2023. For more information about the settlement see the Chicago Department of Business Affairs and Consumer Protection Settlement FAQ here.

What’s more, affected restaurants not currently signed up with Uber Eats or Postmates are also eligible for at least 44 weeks on Uber Eats commission-free. To claim those benefits restaurants must email chicagosettlement2022@uber.com or call 773-839-2784. The deadline to claim these benefits is January 29, 2023.

As on-demand food delivery services accelerated during the early days of the pandemic, the associated fees became a sticking point with restaurants and convenience retailers alike.

The NACS research report “Last-Mile Fulfillment in Convenience Retail,” released in October 2020, pointed to the recent ratcheting up in on-demand services by c-stores, with 68% of North American-based store operators polled saying that they began offering last-mile fulfillment in response to the pandemic, NACS Magazine reports in “Delivery Dilemma” in the September 2021 issue. Third-party platforms like DoorDash and Uber Eats were the most frequent method for ordering, but delivery providers varied, with more than one-third of the stores surveyed using their own staff for delivery, according to the report.

Here’s what c-stores are doing to make delivery work for their businesses.

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