Uber Eats and Postmates allegedly listed restaurants without consent – and charged restaurants more than a 15% delivery-fee cap related to the pandemic.
The City of Chicago has reached a $10 million settlement with Uber Technologies Inc. stemming from allegations that Uber Eats and Postmates listed restaurants on their platforms without consent, and that restaurants were charged more than legally allowed.
Weiner said Postmates had listed several of his group’s 15 restaurants without permission, and that he plans to submit an application for compensation under the settlement. He likened the giant third-party delivery platforms to utilities and said their practices should be scrutinized. Chicago sued Uber competitors DoorDash Inc. DASH, -3.55% and Grubhub last year, alleging deceptive fees and predatory practices that include behavior similar to some of the allegations against Uber. For example, the lawsuits allege that the companies cause problems for nonpartner restaurants when they scrape information about them online and don’t verify their accuracy.
“The city reached out to all three companies to discuss its concerns about their conduct in Chicago,” a spokesperson for the Department of Business Affairs and Consumer Protection told MarketWatch on Monday. “Settlement discussions proved fruitful in Uber.”
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