$10 Million Settlement Reached By Uber Eats, Chicago After City Investigation

CHICAGO, IL — The city of Chicago has reached a $10 million settlement with Uber after the company listed restaurants on Uber Eats and Postmates without the businesses’ consent and violated the city’s emergency fee cap ordinance, the mayor’s office announced Monday. Both Uber Eats and Postmates are operated by Uber.

“Chicago’s restaurant owners and workers work diligently to build their reputations and serve our residents and visitors,” Mayor Lori Lightfoot said in a city news release. “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.”

The settlement's terms include corrective actions Uber took in 2021, such as removing restaurants that were listed on its platforms without their consent and repaying $3.33 million to eateries that were charged commissions exceeding 15 percent in violation of Chicago’s emergency fee cap ordinance, according to the city. The ordinance was passed in 2020 in response to reliance on third-party food delivery services during the coronavirus pandemic.

Uber has also agreed to pay $500,000 and provide $2.5 million in commission waivers to restaurants that were listed on its platforms without the eateries' consent and that do not currently contract with the company, the city said Monday. Uber will pay another $2.25 million to restaurants that were charged commissions above Chicago's emergency cap and provide $1.5 million to cover the cost of the city’s investigation into the meal delivery platforms’ practices, the mayor’s office said.

“We are committed to supporting Uber Eats restaurant partners in Chicago and are pleased to put this matter behind us,” Uber spokesman Josh Gold said in an email.

The company cited “positive discussions” that have been ongoing with the city since 2021, and noted that Uber took steps to refund restaurants the fees they were owed in 2021 after learning of the company's noncompliance with the commission cap. Uber also characterized “non-partnered” listings as a way to add selection to new markets and a “temporary sales tactic” to establish contracted partnerships.

"We welcome any relief provided to the independent restaurants that struggled throughout the pandemic and continue to shoulder the rising costs of doing business," Sam Toia, president and CEO of the Illinois Restaurant Association, said in the city news release.

“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."

Restaurants previously listed on Uber’s platforms without consent can visit Chicago.gov/UberSettlement and follow instructions to receive financial relief and commission waivers, according to the city. Those that were charged commissions in excess of the fee cap in 2021 will receive payment automatically from Uber.