Uber Technologies, Inc (NYSE: UBER) reached a multimillion-dollar settlement with the city of Chicago over alleged regulatory deceptive practices at UberEats and Postmates.
Chicago's investigation found that Uber listed restaurants without consent and charged excessive fees, the Wall Street Journal reports.
The total figure of $10 million included a $3.3 million settlement made by Uber in 2021, which Chicago previously repaid to Chicago restaurants.
Uber charged some restaurants commissions exceeding 15%, which violated the city's ordinance capping emergency fees during the pandemic.
Uber agreed to pay an additional $2.3 million to restaurants for charging commissions above the limits set by the city.
The meal-delivery platform agreed to reimburse $500,000 to Chicago restaurants listed without their consent and who did not have contracts with Uber.
Uber would provide another $2.5 million in commission waivers to restaurants listed on the platform without consent and lacked contracts with Uber.
Uber removed all remaining Chicago restaurants listed on Uber's platforms without their consent and agreed not to list Chicago restaurants in the future without their permission.
The pandemic caused a considerable shift in restaurants and diners to online platforms. Other cities, like New York and San Francisco, imposed caps on fees charged by delivery services.
Uber held $4.9 billion in cash and equivalents as of September 30.
Uber reported third-quarter FY22 revenue growth of 72% year-on-year to $8.34 billion. Revenue from Mobility grew to $3.82 billion (+73% Y/Y), Delivery was $2.77 billion (+24% Y/Y), and Freight at $1.75 billion (336% Y/Y).
Price Action: UBER shares traded higher by 0.36% at $27.80 premarket on the last check Tuesday.
Photo via Wikimedia Commons
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