Uber Eats to pay millions for listing Chicago restaurants without consent

In a settlement with the City of Chicago, the company agreed to pay $10 million for listing local restaurants in its food delivery apps without their consent.

According to a law firm that represented the city in the matter, over $5 million will be paid back to Chicago restaurants that were affected, and over 1.5 million will be paid back to Chicago for the costs incurred during the city's two year investigation into the matter.

Chicago is not the first city to deal with food delivery apps without their permission. Several apps have been accused of putting restaurant menus on their own platforms. When a customer orders through the app, the restaurant will place the order on the customer's behalf. The practice leads to customers ordering menu items that no longer exist or aren't priced correctly, cancellation of orders and lack of control over food handling and delivery.

The Mayor said that the settlement reflected the City's commitment to creating a fair and honest marketplace. The owners and workers of Chicago restaurants work hard to build their reputations. Our economy is dependent on transparency and fair pricing in our hotels. There is no place for deceptive practices.

The claims against Uber are similar to the ones against DoorDash and other businesses. The cases are still going on.

In September of last year, the city of Chicago reached out to the ride-sharing service. All non-consensually listed restaurants were removed from the platform and the company agreed not to list Chicago restaurants without permission.

Under Monday's settlement, there will be an additional $2.25 million to restaurants that were charged higher than the fee cap, $500,000 to restaurants that don't currently contract with the company, and $2.5 million in commission waivers to affected restaurants.

Sam Toia, president and CEO of the Illinois Restaurant Association, welcomed any relief provided to the independent restaurants that struggled during the Pandemic.

According to the city, some merchants were advertised as exclusive to the platform and that certain subscribers would receive free deliveries.

The settlement states that there was no wrongdoing by the company. Josh Gold is a spokesman for the ride hailing service.

We are happy to put this behind us and support our restaurant partners in Chicago.

According to the Chicago Tribune, more than 2,500 Chicago restaurants could be eligible for the settlement. The restaurant owners have until January 29 to apply.