City of Chicago Reaches $10 Million Settlement with Uber Eats, Postmates
CHICAGO — Today, the City of Chicago announces that Uber has agreed to a settlement stemming from the City’s investigation into UberEats’ and Postmates’ practices of listing Chicago restaurants on their platforms without the restaurants’ consent, being in violation of the City’s emergency fee cap ordinance, and other advertising-related conduct. The City acknowledges Uber’s cooperation in bringing this investigation to closure.
“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 Lightfoot. “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.”
Under the settlement terms:
- In September 2021, in response to the City’s discovery of unlawful conduct, Uber quickly repaid $3,331,892 to Chicago restaurants that had been charged commissions exceeding 15%, in violation of the City’s emergency fee cap ordinance.
- Uber will pay an additional $2,250,000 to Chicago restaurants that were charged commissions in excess of the limits set by the City’s emergency fee cap.
- After reaching out to Uber in 2021, the company removed all remaining Chicago restaurants that had been listed on Uber’s platforms without consent and agreed not to list Chicago restaurants without consent in the future.
- Uber will pay $500,000 to Chicago restaurants that Uber listed on its meal delivery platforms without consent and that do not currently contract with Uber.
- Uber will provide $2,500,000 in commission waivers to Chicago restaurants that were listed on Uber’s platforms without consent and that do not currently contract with Uber.
- Uber will pay $1,500,000 to the City to cover the costs and fees of its investigation.
“We delivered on our commitment to protect consumers and businesses," said Kenneth J. Meyer, Commissioner, Chicago Department of Business Affairs and Consumer Protection. "The settlement is the result of the City acting swiftly and holding companies accountable for deceitful practices."
"We welcome any relief provided to the independent restaurants that struggled throughout the pandemic and continue to shoulder the rising costs of doing business," said Sam Toia, President and CEO, Illinois Restaurant Association. “No third party delivery company should be listing restaurants without their consent, and all third party companies should have been following the emergency cap imposed during the pandemic. Our restaurants will receive immediate benefit from this settlement.”
Restaurants previously listed on Uber’s platforms without consent should visit Chicago.gov/UberSettlement and follow the instructions to receive financial relief and commission waivers. Restaurants that were charged commissions in excess of the fee cap in 2021 will receive payment automatically from Uber.
A link to the complete Settlement Agreement can be found at Chicago.gov/UberSettlement.