SYDNEY, Australia – Ride-hailing giant Uber has agreed to pay a whopping $178 million to settle a class-action lawsuit with taxi and hire car drivers in Australia. The drivers claimed that they suffered financial losses due to the ride-hailing app. The law firm behind the class-action suit, Maurice Blackburn Lawyers, hailed the outcome as one of the most successful legal actions ever taken against Uber.
In 2019, Maurice Blackburn Lawyers filed the class-action suit on behalf of more than 8,000 taxi and hire car owners and drivers. The law firm’s Principal, Michael Donelly, expressed satisfaction with the settlement, stating that Uber had fought against providing any compensation or remedy for the losses suffered by their group members throughout the five-year-long legal battle. Donelly described the settlement as a victory for everyday Australians standing up to a global giant.
According to Donelly, this settlement stands among the top five class-action settlements in Australian legal history and sends a clear message that Uber has been held accountable for its actions. In response, Uber cited its significant contributions to taxi compensation schemes at the state level since 2018 and stated that this settlement puts these “legacy issues” behind them.
Uber asserted that when it started over a decade ago, there were no ridesharing regulations anywhere in the world, including Australia. However, the company emphasized that it is now regulated in every state and territory across Australia and recognized as an important part of the nation’s transportation system. The company believes that ridesharing has expanded Australia’s overall point-to-point transport industry, offering consumers more choices and improved experiences, while also creating new earning opportunities for hundreds of thousands of Australian workers.
While Uber is focused on enabling millions of Australians to travel safely, affordably, and reliably from point A to point B, the settlement will allow the company to move past this legal battle and continue its operations without further hindrance. The law firm’s successful outcome in this class-action suit highlights the significance of holding tech companies accountable for the impact of their services on traditional industries.