Uber Eats Just Settled Its Lawsuit With Chicago For $10 Million
When you're tired or just don't feel like dealing with crowds, ordering from services like Uber Eats and DoorDash is an easy alternative that lets you enjoy your favorite meals from the comfort of your own home. While many restaurants and popular eateries have teamed up with the services to make it easier to get the food you love, not everyone is a fan of the third-party companies. The city of Chicago sued DoorDash and Grubhub last year, accusing the delivery platforms of listing restaurants on their site without permission from the eateries and being in violation of the city's emergency fee cap, per Eater.
While Uber Eats — which also owns Postmates — wasn't specifically named in the initial lawsuit, it's been revealed that the company's settled out of court with Chicago for a staggering $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 the mayor of Chicago, Lori Lightfoot (via Chicago Defender). "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."
What this settlement means for Chicago restaurants
Part of the agreement involves Uber Eats repaying more than $2.2 million to Chicago eateries that had been charged fees that exceeded 15%, which was prohibited during the city's emergency fee cap, in addition to the $3.3 million Uber already paid in 2021, according to the Chicago Defender. Another $500,000, as well as $2.5 million in commission waivers, will go to restaurants that were listed on the app without their consent. The rest of the money will go to paying for the cost of the investigation.
"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 the president and CEO of the Illinois Restaurant Association, Sam Toia. "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."
According to Eater, DoorDash and Grubhub continue to deny they are guilty of any misconduct and will continue to fight against the lawsuits.