SYDNEY — Global rideshare giant Uber will pay 272 million Australian dollars ($178 million) to settle a long-running dispute with Australian taxi and hire car drivers who lost out when the company entered the Australian market.
A class action against Uber had been expected to go to trial in the Supreme Court of Victoria on Monday, but Maurice Blackburn Lawyers — representing 8,000 taxi and hire car drivers — said the case will be dropped because Uber agreed to the financial settlement.
Maurice Blackburn principal lawyer Michael Donelly said that drivers and car owners suffered financial losses due to Uber’s aggressive entry into the market in 2012 and that the company consistently attempted to avoid compensating them.
“On the courtroom steps and after years of refusing to do the right thing by those we say they harmed, Uber has blinked, and thousands of everyday Australians joined together to stare down a global giant,” he said.
An Uber statement described the complaints of the taxi industry as “legacy issues” and said rideshare regulations did not exist anywhere in the world when the company started more than a decade ago.
“The rise of ridesharing has grown Australia’s overall point-to-point transport industry, bringing with it greater choice and improved experiences for consumers, as well as new earnings opportunities for hundreds of thousands of Australian workers,” the statement said.
“Since 2018, Uber has made significant contributions into various state-level taxi compensation schemes, and with today’s proposed settlement, we put these legacy issues firmly in our past.”
It’s the fifth-largest class action settlement in Australia’s history and comes five years after the action was launched.
Uber has reached a settlement with Australian taxi drivers in a long-standing legal dispute, agreeing to pay $178 million to resolve the issue. The settlement comes after years of legal battles between the ride-sharing giant and taxi drivers in Australia.
The dispute began in 2014 when Uber entered the Australian market, disrupting the traditional taxi industry. Taxi drivers argued that Uber was operating illegally and taking away their business. They claimed that Uber’s drivers were not subject to the same regulations and licensing requirements as traditional taxi drivers, giving them an unfair advantage.
The legal battle dragged on for years, with taxi drivers seeking compensation for lost income and damages caused by Uber’s entry into the market. The $178 million settlement is a significant victory for the taxi drivers, who have been fighting for fair compensation for years.
Uber has agreed to pay the settlement amount to the taxi drivers, which will be distributed among them based on their individual claims. The settlement also includes provisions for Uber to make changes to its operations in Australia to ensure compliance with local regulations and level the playing field for all transportation providers.
The resolution of this legal dispute is a positive development for both Uber and the taxi industry in Australia. It brings an end to years of uncertainty and conflict, allowing both sides to move forward and focus on providing safe and reliable transportation services to customers.
Uber has faced similar legal challenges in other markets around the world, as traditional taxi industries have struggled to adapt to the rise of ride-sharing services. The settlement in Australia sets a precedent for how these disputes can be resolved through negotiation and compromise, rather than prolonged litigation.
Overall, the $178 million settlement between Uber and Australian taxi drivers marks a significant milestone in the ongoing evolution of the transportation industry. It demonstrates the importance of finding common ground and working together to address the challenges and opportunities presented by new technologies and business models.
