Melbourne, Australia: Uber has reached a settlement of A$271.8 million with taxi operators and drivers in Australia after a class-action lawsuit led by Maurice Blackburn Lawyers on behalf of over 8,000 taxi and hire car owners and drivers. The lawsuit alleged that Uber’s aggressive expansion into the country caused them to lose income.
The law firm stated that Uber vigorously contested the case since its initiation in 2019 in the Supreme Court of Victoria. However, Uber has now agreed to the settlement, with the company emphasizing its contributions to various state-level taxi compensation schemes since 2018.
While the exact terms of the settlement were not disclosed by Uber, the proposed agreement is subject to court approval to ensure it is in the best interests of the group members. Michael Donelly, principal lawyer at Maurice Blackburn, highlighted the success of the case in contrast to previous failed legal actions against other entities.
The proposed settlement marks a pivotal moment for the affected taxi and hire car owners and drivers, signifying a resolution to their grievances. Despite Uber’s global presence in over 70 countries and 10,000 cities, the company continues to face opposition and legal challenges in various regions.
Notably, in December 2023, Uber emerged victorious in a lawsuit brought against it by taxi drivers in France, where a commercial court ruled in favor of Uber, dismissing claims of unfair competition. The latest settlement in Australia reflects a significant step towards resolving longstanding issues related to Uber’s disruptive entry into the Australian transportation market.