Food Delivery Apps Ordered to End Race-Based Pricing

Brnovich Settles Discrimination Allegations with Food Delivery Services

(The Center Square) Uber Eats, Postmates and DoorDash have settled with Arizona Attorney General Mark Brnovich for allegations of race-based price discrimination. 

The food delivery companies started waving delivery fees for restaurants owned by Black individuals last summer. 

In November of 2020, the Civil Rights Division of Brnovich’s office took legal action against the three companies on the grounds of public accommodations discrimination based on race. The charges alleged that the offer to waive delivery fees for restaurants owned by Black individuals violated the Arizona Civil Rights Act (ACRA) by unlawfully discriminating against non-Black-owned restaurants and their patrons.

A spokesperson for UberEats told The Center Square that the promotion ran from June 2020 through the end of the year, in line with a commitment made by CEO Dara Khosrowshahi in a letter to consumers that summer. 

In a statement to The Center Square, Uber said that they were “proud to have supported Black-owned businesses” and will “continue to make it a priority.”

The food delivery companies are no longer allowed to offer financial incentives, advertise, or provide a delivery fee or price-related discounts to customers in Arizona on account of race, color, religion, sex, national origin, or ancestry.

As part of the agreement, the companies must inform their agents and employees of the change, no longer engage in discrimination or retaliation and provide their employees with anti-discrimination training. 

Brnovich said that regardless of good intentions, the practice of price discrimination is illegal in Arizona. 

“Even with the best of intentions, corporations can do the wrong thing. Altering the price of goods or services based on race is illegal,” he said in a statement. “My office opened these investigations and pursued these settlements to protect civil rights and ensure businesses offer their services and products based on equal and neutral criteria.”