DoorDash, Uber Eats settle race discrimination claim by Arizona over free delivery for Black-owned businessesJune 2, 2021
Uber Eats waives delivery fees for black-owned restaurants
Uber Eats will not charge delivery fees for black-owned restaurants
FIRST ON FOX: Food delivery companies DoorDash, Uber Eats and Postmates have settled a claim of race discrimination launched by the Arizona Attorney General’s office over the companies’ promotions to waive delivery fees for Black-owned restaurants, after Arizona claimed it violated the state’s civil rights act.
Arizona launched the challenge last year over the companies’ decisions in 2020 to waive delivery fees for customers who purchased from Black-owned merchants. The initiatives were launched as the companies said Black-owned businesses had been disproportionately impacted by the pandemic and came amid ongoing protests over the death of George Floyd.
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DoorDash pointed to statistics that show Black-owned businesses saw revenue drops of over 50% and a more than 40% closure rate in early 2020, as well as continued unemployment for Black Americans nearing double digits.
But Attorney General Mark Brnovich said that, no matter the intention, the outcome was still race discrimination.
"Even with the best of intentions, corporations can do the wrong thing. Altering the price of goods or services based on race is illegal," Attorney General Mark Brnovich 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."
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As part of the settlement, the companies have agreed not to offer financial incentives or price or delivery-related discounts to customers in Arizona based on an owner’s race, color, religion, sex, national origin or ancestry. They have also agreed to ensure that employees in Arizona receive notice of the obligations.
Arizona’s Civil Rights Division served the companies late last year with a Notice of Public Accommodations Charge of Discrimination. The matter did not go to court, instead being resolved before any formal investigation went forward, and before any findings were made by the Civil Rights Division. The settlements state that the agreements are not admissions of wrongdoing by the respective companies.
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Uber, in a statement to FOX Business, said it was "proud to have supported Black-owned businesses and we'll continue to make it a priority."
"We have heard loud and clear from consumers that the ability to easily identify Black-owned restaurants on Uber Eats is a feature they want and appreciate," a spokesperson said.