MELBOURNE, Australia – Uber has agreed to pay a settlement of nearly $272 million to compensate taxi and hire-car drivers in Australia who suffered financial losses when the rideshare company aggressively entered the market. The class-action lawsuit, which was set to go to trial at the supreme court of Victoria, was canceled after Uber reached the $271.8 million settlement. This is now the fifth-largest class-action settlement in the history of Australia.
Over 8,000 taxi and hire-car owners and drivers were represented by Maurice Blackburn Lawyers in the legal battle that spanned five arduous years. The drivers and car owners experienced income and license value losses due to Uber’s aggressive expansion, with the company consistently denying them compensation.
The settlement still needs formal approval from the supreme court before the compensation is distributed to the affected parties. Displaying solidarity outside the court, principal lawyer Michael Donelly acknowledged the resilience and fundamental importance of the taxi and hire-car industry to Australia. He commended them for standing up against Uber’s disruption of the traditional model.
Lawyers argued that Uber X deliberately entered the Australian market to harm local taxi and hire-car drivers, utilizing unlicensed vehicles and unaccredited drivers in what they described as a “conspiracy by unlawful means.” They also accused Uber of misleading regulators and geoblocking authorities.
The lead plaintiff, Nick Andrianakis, a former long-time taxi driver, expressed his satisfaction with the settlement, stating that it is a victory for an industry that was severely impacted by Uber’s actions.
While an Uber spokesperson referred to the complaints made by taxi and hire-car drivers as “legacy issues,” they emphasized that Uber is now a regulated entity in every state and territory in Australia. They also highlighted the positive contributions of ridesharing to the overall transport industry and the increased options and better experiences it offers to consumers.
This class-action settlement succeeded where previous cases against state governments failed, according to Michael Donelly. An approval application for this settlement is expected to be reviewed by the supreme court in April. In addition to this settlement, another proceeding initiated by Taxi Apps Pty Ltd is still ongoing and will likely go to trial in the near future.