SYDNEY, Australia – Uber has agreed to pay $178 million to settle a lawsuit with Australian taxi drivers, according to a law firm involved in the case.
The plaintiffs, including the New South Wales Taxi Council and the Victorian Taxi Families group, accused Uber of operating illegally and causing a decline in the value of their taxi licenses.
The settlement, believed to be one of the largest in Australian legal history, ends a class action that was brought against Uber in 2017.
Uber will pay a total of AU$138 million ($103 million) to the taxi drivers involved in the lawsuit, as well as AU$40 million ($30 million) towards a hardship fund for eligible drivers who experienced significant financial loss due to the rise of Uber.
The case centered around Uber’s entry into the Australian market, which was seen as a direct challenge to traditional taxi operations. Many taxi drivers found it difficult to compete with Uber’s lower prices and flexible working hours.
Uber argued that it was not subject to the same regulations as traditional taxi services, which led to tensions with the taxi industry and local governments. The company faced numerous legal battles around the world as it expanded its operations in various countries.
This settlement marks a significant victory for the Australian taxi industry, which has long claimed that Uber’s entry into the market was unfair and harmed their livelihoods.
While Uber has reached settlements in other lawsuits before, including a $20 million settlement in a case brought by drivers in California, the size of the settlement agreed upon in Australia is unprecedented.
The case also highlights the ongoing tension between emerging technology platforms and traditional industries. As new services disrupt existing markets, conflicts often arise, with established players seeking legal redress.
The settlement is still subject to court approval, but if finalized, it will likely provide some closure for the Australian taxi drivers involved in the lawsuit, as well as set a precedent for future legal cases involving Uber.