IANS | 06 Dec, 2022
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.
