Uber agrees to pay $178 million settlement to Australian taxi drivers: Report

Uber, has reached a landmark settlement agreement to pay A$271.8 million (US$178 million) to resolve a class-action lawsuit brought by Australian taxi operators and drivers on Monday.

According to Reuters, this settlement, described as the fifth-largest in Australia’s legal history, marks the culmination of a protracted legal battle initiated in 2019.

The lawsuit, filed on behalf of more than 8,000 taxi and hire car owners and drivers, alleges that Uber’s entry into the Australian market resulted in significant financial losses for traditional taxi operators, violating regulatory requirements.

AFP News cited Lead lawyer Michael Donelly from Maurice Blackburn Lawyers, who hailed the settlement as a huge victory for the affected drivers and operators.

“Uber fought tooth and nail at every point along the way, every day, for the five years this has been on foot… but on the courtroom steps… Uber has blinked,” AFP News quoted him as saying.

Donelly further highlighted that the settlement provides a measure of redress for the losses incurred by the plaintiffs, who had been denied compensation for years.

According to the lawsuit, Uber’s arrival in the Australian market in 2012 disrupted the taxi industry, leading to a decline in revenue for licensed taxi drivers and a depreciation in the value of taxi licenses.

The plaintiffs argued that Uber operated in violation of laws requiring taxis and hire cars to be licensed, giving the company an unfair advantage in the market.

Uber had maintained that it had not knowingly violated any laws.

According to Reuters, former lawmaker and taxi driver Rod Barton, a member of the class action, asserted that Uber had deliberately circumvented Australia’s taxi licensing regulations to gain a competitive edge in the market.

“They knew full well they were required to have their drivers and their vehicles fully licenced. They chose not to do that, and they did a lot of things that gave them a commercial advantage against the taxi industry, which established their foothold,” he said.

The settlement, he believes, vindicates the claims made by the plaintiffs and underscores the need for accountability in the transportation sector.

The settlement agreement represents a significant development in the ongoing debate surrounding the regulation of ridesharing services in Australia.

With the emergence of platforms like Uber, traditional taxi operators have faced mounting challenges, prompting calls for regulatory reforms to level the playing field.

While Uber has acknowledged the settlement, it refrained from commenting on its size until it receives final approval from the court.

(With inputs from agencies)