Uber is in the midst of preparing for its IPO in 2019. It is facing strong competition in the U.S. and in Europe.
On Monday, the head of Australia’s antitrust regulator stated it will scrutinize contracts signed between Uber Technologies Inc and restaurants for the delivery of food using Uber Eats’ app.
On Sunday, the Australian Broadcasting Corporation had reported that many restaurateurs were unhappy with the terms of the contract since, according to their contract, they and not Uber is responsible for late deliveries despite being charged by Uber for the service.
“Certainly, we’ll have a look at it,” said Rod Sims, head of the Australian Competition and Consumer Commission, in reference to the report.
“We have three bits of the law we can deal with here. One is business to business – are they misleading the people they’re dealing with? Two is: Are they engaged in unconscionable conduct, putting all the conduct together? And thirdly are the terms with which they work unfair? So, there’s a lot to look at there,” said Sims.
According to Uber, Uber Eats is merely a “marketplace that connects restaurants with delivery partners” and that its terms and conditions are “consistent with Australian law”.
He went on to add, “Restaurants aren’t locked in, just like delivery partners and eaters. Uber Eats is just one option. If a restaurant does not wish to use the app, they do not have to”.