Uber to Pay Chicago $10M to Resolve Claims Delivery Apps Hurt Restaurants During Pandemic

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Uber to Pay Chicago $10M to Resolve Claims Delivery Apps Hurt Restaurants During Pandemic
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Chicago is waiting on their delivery from Uber for $10 million.

Uber will pay $10 million to resolve complaints filed by Chicago officials alleging the firm’s food delivery apps harmed restaurants and misled diners during the COVID-19 pandemic that cratered Chicago’s restaurant industry.Uber, which owns Uber Eats and Postmates, listed Chicago restaurants on their platforms without their consent and failed to cap their delivery fees at 15% until after the last of the city’s COVID-19 restrictions were lifted, according to an investigation by city officials.

Mayor Lori Lightfoot said in a statement that the city was committed to protecting Chicago businesses and their customers. “Chicago’s restaurant owners and workers work diligently to build their reputations and serve our residents and visitors,” Lightfoot said. “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.”In September 2021, Uber officials repaid $3.3 million to Chicago restaurants that had been overcharged for delivery fees. The firm will pay an additional $2.

The firm also agreed in September 2021 to remove restaurants from Uber’s platforms that had been listed without their consent and to stop that practice. Uber will pay $500,000 to Chicago restaurants that the firm listed on its food delivery platforms without consent and that do not currently contract with Uber. Those eateries will also get an additional $2.5 million in commission waivers.More information about the settlement is available

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