San Francisco— Ride-hailing major Uber will pay millions of dollars as settlement with the City of Chicago in the US for listing local restaurants in food delivery apps Uber Eats and Postmates food delivery apps without consent along with charging excess commission fees.
More than 2,500 Chicago restaurants are estimated to be eligible to benefit from the Uber settlement, reports TechCrunch.
Over $5 million will go toward paying damages back to Chicago restaurants that were affected, and $1.5 million will go to Chicago for the costs incurred during the city’s two-year investigation into the matter.
Uber will pay an additional $2.25 million to restaurants that were allegedly charged commissions higher than the fee cap and $500,000 to restaurants that Uber listed on its platforms without consent.
Uber will also pay $2.5 million in commission waivers to affected restaurants.
“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,” said Mayor Lori Lightfoot in a statement.
The city also alleged that Uber participated in deceptive advertising practices.
“We are committed to supporting Uber Eats restaurant partners in Chicago and are pleased to put this matter behind us,” a company spokesperson was quoted as saying in the report. (IANS)
