Uber, DoorDash Can't Give Discounts For Black-Owned Restaurants, Arizona Settlement Says
Popular food delivery services in Arizona can no longer offer discounts to businesses just because they’re Black-owned. This comes after a settlement between Arizona’s Attorney General’s Office, Uber Eats, Postmates and DoorDash.
After the murder of George Floyd last year, DoorDash, Uber Eats and its brand Postmates waived delivery fees for some Black-owned restaurants. The delivery companies said they wanted to respond to nationwide calls for racial justice. But legal challenges came quickly. Uber reportedly received thousands of demands for arbitration.
In the fall of 2020, the Arizona Attorney General’s Office, through its Civil Rights Division, filed charges against the companies, alleging that the race-based discounts violated the Arizona Civil Rights Act. The companies deny any wrongdoing, but in the settlement, they agreed not to offer financial incentives or discounts to Arizona customers based on race, religion, sex, national origin or ancestry.
Attorney General Mark Brnovich said in a statement, “Even with the best of intentions, corporations can do the wrong thing. Altering the price of goods or services based on race is illegal. 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.”
In an email, a spokesperson for DoorDash said communities of color have been disproportionately impacted by the economic crisis caused by the pandemic and said many government programs are designed to benefit minority-owned businesses.
“DoorDash is proud to support Black-owned businesses and honored to do our part to lift up those who need it most,” the statement said. “While we adamantly deny any wrongdoing, particularly when government programs have offered the exact support DoorDash has provided, we’re ready to put this dispute behind us and return our focus to enabling equitable access to the merchants, Dashers, and customers we serve. We all have an obligation to elevate and support underrepresented communities, and we look forward to continuing to do so in Arizona and beyond.”
A spokesperson for Uber Eats and Postmates said in a statement, "We’re 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 is a feature they want and appreciate."