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The head of Australia’s competition regulator said that it will scrutinise contracts between Uber Technologies Inc and restaurants that use its food delivery app Uber Eats.
The Australian Broadcasting Corporation reported on Sunday several restaurateurs were disgruntled with contract terms they said left them, and not Uber, responsible for late deliveries despite being charged by Uber for the service.
Uber, which is backed by Japan’s SoftBank Group, said Uber Eats is merely a “marketplace that connects restaurants with delivery partners” and that its terms and conditions are “consistent with Australian law”.
Jodie Auster, head of Uber Eats in Australia and New Zealand said that, it is reasonable and fair for restaurants to be held responsible if they make errors with orders.
Uber, which is preparing for a potential initial public offering in 2019, lost $4.5 billion last year and is facing fierce competition at home in the United States as well as a regulatory crackdown in Europe where governments have been leery of the company’s impact on the traditional taxi industry.