Ride-hailing company Uber has agreed to pay A$271.8 million (US$178 million) to settle a class-action lawsuit filed by Australian taxi operators and drivers. The lawsuit, filed in 2019, alleged that Uber's entry into the Australian market significantly impacted the traditional taxi industry, causing financial losses for taxi drivers and business owners.
Maurice Blackburn Lawyers, the legal firm representing over 8,000 taxi and hire car drivers, stated that the settlement marks the fifth-largest in Australian legal history. The lawsuit contended that Uber's operations flouted regulations requiring proper licensing for taxis and hire cars.
“This settlement... is a significant win for the thousands of taxi and hire car drivers who saw their livelihoods threatened by Uber’s aggressive entry into the Australian market,” said Josh Bornstein, a lawyer with Maurice Blackburn Lawyers. The firm added that Uber "fought tooth and nail at every point along the way" during the legal proceedings.
The settlement comes after years of contention between Uber and Australia's taxi industry. When Uber first entered the Australian market, it faced opposition from taxi drivers who argued that the ride-hailing app did not adhere to the same regulations as taxis, giving Uber an unfair advantage. This resulted in protests and legal challenges from the taxi industry.
While the details of the settlement have not been publicly disclosed, it is expected that the A$271.8 million will be distributed among the taxi drivers and operators who were part of the class action lawsuit. The settlement is a significant development for the Australian taxi industry, which has faced challenges in recent years due to the rise of ride-hailing companies like Uber.
The impact of the settlement on Uber's operations in Australia remains to be seen. Uber has not yet publicly commented on the settlement, but it is likely that the company will continue to operate in Australia. However, the settlement may prompt Uber to review its business practices in the country to ensure compliance with regulations.
The outcome of this lawsuit serves as a reminder of the ongoing disruption within the transportation sector caused by ride-hailing companies. It also highlights the challenges faced by traditional taxi industries as they adapt to a changing market landscape.