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Why Uber settled with the city of Chicago and what it means

Uber Eats paid Chicago $10 million for listing restaurants without permission earlier this week


Uber Eats agreed to pay the city of Chicago $10 million as a legal settlement for listing Chicago restaurants in both Uber’s and Postmates’ apps without the restaurants’ consent, according to reporting from the Chicago Tribune on Dec. 5. The legal agreement is the result of a two-year investigation into Uber’s practices and the company was found in violation of Chicago’s emergency fee cap ordinance, and other advertising-related conduct, according to a press release from Chicago Mayor Lori Lightfoot’s office.

Under the settlement terms that began last year, Uber had to pay $13.3 million to restaurants that were charged outside of that 15% fee cap and will have to pay an additional $2.25 million to restaurants for the same reason moving forward. In 2021, Uber had removed all restaurants that had not expressly agreed to be listed on the platform from both Uber Eats and Postmates, and will pay $3 million to restaurants that were listed without permission in total to restaurants. Uber will also pay $1.5 million to the city of Chicago to cover costs and fees of the investigation.

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