CHICAGO (WBBM NEWSRADIO) — The City of Chicago reached a multi-million dollar settlement on Monday with two food delivery services over their deceptive practices.
Uber Eats and Postmates were accused of listing Chicago eateries on their platforms without the restaurants’ consent and allegedly ignored the city’s pandemic emergency fee cap.
In an effort to bring a two-year investigation to a close, Mayor Lori Lightfoot’s office announced the City and Uber agreed to a $10 million settlement.
Uber, which also owns Postmates, already repaid more than $3.3 million and will now pay an additional $2.2 million to Chicago restaurants that had been charged commissions exceeding 15%.
Another $500,000 will be set aside for restaurants listed on the platforms without their consent, along with $2.5 million in commission waivers.
The City of Chicago will receive $1.5 million to cover the cost of the investigation.
“Chicago’s restaurant owners and workers work diligently to build their reputations and serve our residents and visitors," said Mayor Lori Lightfoot in a statement. "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.”
Restaurants previously listed on Uber’s platforms without consent should visit the City’s website and follow the instructions to receive financial relief and commission waivers.
Locations that were charged commissions in excess of the fee cap in 2021 will receive payment automatically from Uber.
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