Last year, the city of Chicago sued third-party food delivery apps after the platforms listed the restaurants without their consent during the pandemic. Apps like Uber Eats and DoorDash violated the city’s emergency fee cap.
Mayor Lightfoot For The People
Last week, Uber Eats settled out of court with Chicago for a whopping $10 million. “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 Chicago’s 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.”
Allocation Of Funds
Some of the agreement details require Uber Eats to pay over $2.2 million to the eateries in Chicago for fees over 15%. Last year Uber had already spent $3.3 million for the same violation. And another $3 million in commission waivers will go to the restaurants listed on the apps without permission from the owners of those eateries. The remainder of the settlement money will go toward the investigation.
Illinois Restaurant Association
“We welcome any relief provided to the independent restaurants that struggled throughout the pandemic and continue to shoulder the rising costs of doing business,” said Sam Toia, the president and CEO of the Illinois Restaurant Association. “No third-party delivery company should be listing restaurants without their consent, and all third-party companies should have been following the emergency cap imposed during the pandemic. Our restaurants will receive immediate benefit from this settlement.”
