Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Uber Eats to pay millions to Chicago restaurants for following a controversial growth playbook perfected by DoorDash

Uber Eats to pay millions to Chicago restaurants for following a controversial growth playbook perfected by DoorDash

The city of Chicago accused Uber Eats of listing restaurants on its platform without consent. The parties announced a settlement today.
Uber Eats and Postmates are paying the price for following in the footsteps of one of their chief rivals, DoorDash.

The two Uber-owned apps have reached a $10 million settlement with the city of Chicago after an investigation found they listed restaurants on their food delivery platforms without consent and violated city fee-cap laws enacted during the pandemic, according to an agreement announced Monday.

One of the strategies that helped DoorDash win the food delivery war was adding hundreds of restaurants to its app without permission. The policy infuriated restaurants, many of whom went public on social media when it happened. In-N-Out sued DoorDash as early as 2015 accusing the delivery company of listing the notoriously private burger chain on its app without consent.

But the fast-tracking of restaurant listings helped DoorDash grow its market share rapidly in the US. To keep up, rivals Uber Eats and Grubhub began adding restaurants without their consent. 

The settlement stems from a probe Chicago said it launched against Uber Eats two years ago. The Uber Eats investigation followed allegations that the app was listing restaurants without their consent and charging marketplace fees beyond the city's 15% cap. 

An Uber Eats spokesperson said the delivery company was happy with today's settlement.

"We are committed to supporting Uber Eats restaurant partners in Chicago and are pleased to put this matter behind us," the spokesperson said in a statement sent to Insider.

The city said in a press release that part of the $10 million settlement includes Uber paying more than $5 million in damages to Chicago restaurants that were listed without permission and paid fee caps beyond 15%. Some of those funds were already paid by Uber Eats last year, including $3.3 million in refunded marketplace fees. 

"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 in a statement. "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."

After the pandemic hit, several major US cities, including San Francisco, New York City, Los Angeles, Chicago, and Seattle, enacted fee caps to protect profits for restaurants that relied solely on delivery to survive in-restaurant dining losses. California also passed a law that went into effect in 2021 that makes it illegal for delivery apps to list restaurants on their platforms without consent.  

Separately, last year, Chicago filed a lawsuit against DoorDash and Grubhub alleging unfair business practices. DoorDash, for example, was accused of using tips to pay itself, according to the lawsuit. 

The DoorDash and Grubhub lawsuits remain active. A hearing on both cases is set for December 13, according to a city representative
Comments

Anna 55 days ago
A friend delivers for uber eats . He explains it as delivering rotton ronnies to lazy people

Newsletter

Related Articles

Budapest Post
Close
0:00
0:00
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
China is opening up for foreign investors.
Tesla reported record profits and record revenues for 2022
Germany confirms it will provide Ukraine with Leopard 2 tanks
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Who’s Threatening Israeli Democracy?
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
Hungary ready to sue EU over cuts to Erasmus funding
EU against democracy: Hungary's mail-in poll on Russia sanctions dismissed by Brussels
2023 - The Year of the Rabbit
Israelis rally in three cities against Netanyahu legal reforms
Tesla slashes prices globally by as much as 20 percent
Japan prosecutors indict man for ex-PM Shinzo Abe murder
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Dirty bomb fears as URANIUM is found in cargo at Heathrow
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
Saudi Arabia set to overtake India as fastest-growing major economy this year 
International medical experts speak out against COVID-19 restrictions on China
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Saudi Arabia’s female ambassadors: Who are the five women representing the Kingdom?
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Hong Kong to scrap almost all its Covid rules
EU calls screening of travellers from China unjustified
Clashes erupt in central Paris after shooting at a Kurdish cultural center
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
Where is Rishi? Chancellor Jeremy Hunt's excuses about the UK's economic challenges just don't make sense
Former FTX CEO Bankman-Fried finally arrested in Bahamas after U.S. files charges
Corruption works: House Financial Services Chair Waters doesn't plan to subpoena her donor, Sam Bankman-Fried, to testify at hearing on FTX collapse
×