UberEats changes contracts with restaurants following investigation

Following an investigation, UberEats in Australia has agreed to change part of its contract that says restaurants are responsible for refunding customers for delivery errors, even if they are not at fault.

Restaurants were being charged when the customer requested money, even if it was Uber or the driver that made a mistake.

The Australian Competition and Consumer Commission deemed this clause “unfair”, and has taken action. The result is the, now, restaurants will only be responsible for mistakes that were within their control, like the order being incorrect.

However, these restaurants will continue to pay a substantial amount of commission to Uber for orders. At the moment, it’s up to 35% for every order placed through the UberEats app.

According to the ACCC chairman, Rod Sims:“[The terms] make restaurants responsible and financially liable for elements outside of their control.”

He added: “They appear to cause a significant imbalance between restaurants and UberEats. Ensuring small businesses aren’t subject to unfair contract terms by larger businesses is one of our top priorities.”

Uber has agreed to remove the term from the contract going forward, so the case won’t need to go through a court process.

A spokesperson for Uber said “in practice it is only in very few circumstances that we have asked restaurants to cover this cost. Restaurants have always been able to dispute any charge back they don’t agree with.”

Last year, Uber faced court action over the way it treats its workers. Workers claimed that they were being treated unfairly by being classed as self-employed.

They argued that they should be treated as employees, which would make them eligible for employment rights like holiday pay and the minimum wage.

In a case that goes back several years, Uber has fought many appeals put forward by unions, arguing that they are merely acting as agents for the drivers, and are not responsible for them as an employer.