Photo/Illutration Sudden, unexplained account suspensions could leave Uber Eats couriers without an income. (Asahi Shimbun file photo)

Uber Eats has reached a settlement with two of its delivery couriers in Japan, who sued the company after their accounts were suspended without sufficient explanation, leaving them unable to work.

The company agreed to pay an undisclosed amount as a settlement, marking what is believed to be the first time Uber Eats has compensated couriers over such a suspension.

The settlement, finalized on April 11, was announced on May 19 by the couriers’ legal representatives.

Legal experts and labor advocates are watching closely to see whether this case will push Uber Eats and similar platforms to clarify and improve their account suspension policies.

According to the plaintiffs’ legal team, the two male couriers had their accounts deactivated in May and August 2022, respectively, without prior warning or clear justification. One of them relied on Uber Eats as his primary source of income.

Despite repeated inquiries, Uber Eats only responded with vague explanations such as “a violation of guidelines was confirmed,” without disclosing specific details.

In September 2023, the two delivery workers filed a lawsuit with the Tokyo District Court, seeking approximately 2.56 million yen ($17,600) in damages and the reactivation of their accounts.

One of the plaintiffs eventually had his account reinstated, while the other remained locked out of the system.

“It is significant that we have made it clear that unjustified account deactivation is unacceptable,” said Yoshihito Kawakami, the lawyer representing the couriers.

In response to inquiries from The Asahi Shimbun, Uber Eats acknowledged the settlement but declined to comment on the specific details of the lawsuit.

The company stated that it prioritizes transparency in its account suspension policies and aims to ensure that couriers understand the standards being applied.

The case has added momentum to the growing debate in Japan over the rights of gig economy workers and the responsibilities of platform companies.