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uber eats faces discrimination allegations over free delivery from black-owned restaurants

AVATAR Megan Rose Dickey
Megan Rose Dickey
Senior Reporter, TechCrunch
October 30, 2020
uber eats faces discrimination allegations over free delivery from black-owned restaurants

Uber reports having received over 8,500 requests for arbitration stemming from its decision to waive delivery charges for select Black-owned restaurants through Uber Eats.

Uber Eats implemented this change in June, in response to demonstrations for racial justice following the death of George Floyd, an unarmed Black man, during an encounter with police. The company stated its intention was to facilitate customer support for Black-owned businesses located in the United States and Canada. Restaurants qualifying for this program must be small or medium-sized enterprises and operate independently, not as part of a franchise system. Delivery fees remain applicable to orders from other restaurants.

One of these claims, reviewed by TechCrunch, asserts that Uber Eats infringes upon the Unruh Civil Rights Act by “imposing differing delivery fees based on the race of the business proprietor.” The claimant is seeking $12,000 in damages, alongside a permanent order preventing Uber from continuing to provide complimentary delivery for Black-owned restaurants.

“We are pleased to provide support to Black-owned businesses through this program, recognizing the disproportionate impact the health crisis has had on them,” stated Uber spokesperson Meghan Casserly in a communication to TechCrunch. “We received clear feedback from customers indicating their desire for this feature—and we remain committed to prioritizing it.”

The website advertising this action to potential claimants indicates that eligible individuals may be entitled to compensation of up to $4,000 if they incurred a delivery fee in California after June 4, 2020.

These arbitration requests are not unexpected, considering Senator Ted Cruz previously predicted Uber would encounter discrimination lawsuits from restaurants not owned by Black individuals.

It is also relevant to note that the customer represented in the complaint is being advised by Consovoy McCarthy, a firm that includes President Donald Trump’s attorney, William Consovoy, among its partners.

TechCrunch has contacted Consovoy McCarthy for comment and will provide updates as information becomes available.

These complaints bear similarities to a case currently facing Microsoft, although on a smaller scale. Earlier this month, the U.S. Department of Labor effectively accused Microsoft of “reverse racism” (a term not legally recognized) for its commitment to increasing the representation of Black employees within its largely white workforce.

Simultaneously, Uber is currently involved in numerous other legal proceedings. In California, an appeals court judge recently affirmed a ruling that mandates Uber and Lyft to reclassify their workers as employees. However, this ruling has not yet been enacted. Consequently, attention is focused on Proposition 22, a California ballot initiative supported by Uber, Lyft, DoorDash, and Instacart, which aims to maintain the classification of gig workers as independent contractors.

#Uber Eats#discrimination#Black-owned restaurants#free delivery#allegations#controversy

Megan Rose Dickey

Megan Rose Dickey currently serves as a senior reporter for TechCrunch, where her reporting centers on topics such as the workforce, transportation systems, and initiatives promoting diversity and inclusion within the technology sector. Prior to her work at TechCrunch, she dedicated two years to Business Insider, providing coverage of technology-based startups concentrating on the sharing economy, the Internet of Things, and the music business. She earned her degree in Broadcast and Digital Journalism from the University of Southern California in 2011. – See more at: https://www.crunchbase.com/person/megan-rose-dickey#sthash.ir4VFt2z.dpuf PGP fingerprint for email is: 2FA7 6E54 4652 781A B365 BE2E FBD7 9C5F 3DAE 56BD
Megan Rose Dickey