Uber settles class action lawsuit in Australia

Uber has decided to pay A$271.8 million ($178 million) to resolve a lawsuit brought by Australian taxi operators and drivers, who say they lost revenue when the ride-hailing firm moved into the nation, a law company said on Monday.

Australia’s fifth-largest settlement has been reached in a class action lawsuit against Uber, according to Maurice Blackburn Lawyers.

Background of the Lawsuit:

The class action suit, representing over 8,000 taxi and hire car owners and drivers, was filed in 2019 in the Supreme Court of Victoria state. It accused Uber of violating laws mandating licensing for taxis and hire cars.

Allegations Against Uber:

The lawsuit claimed that Uber’s entry into the market in 2012 led to a decline in revenue for licensed taxi drivers and diminished the value of the licences they had obtained.

Uber’s Response:

Uber consistently maintained that it never knowingly violated any laws. However, the company faced staunch opposition throughout the legal battle.

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Settlement Reached:

Maurice Blackburn Principal Michael Donelly stated that Uber vigorously contested the lawsuit but ultimately reached a settlement. The proposed settlement signifies Uber’s acknowledgment of the harm caused and its willingness to resolve the matter.

Uber’s Perspective:

An Uber spokesperson emphasized the company’s contributions to state-level taxi compensation schemes since 2018. With the proposed settlement, Uber aims to put these contentious issues behind it.

Implications of the Settlement:

Former lawmaker and taxi driver Rod Barton, a participant in the class action, sees the settlement as validation of his belief that Uber knowingly evaded Australia’s taxi licensing regulations.

Conclusion:

The settlement of the class action lawsuit marks a significant development in the ongoing dispute between Uber and Australian taxi and hire car owners and drivers. As Uber moves forward, it seeks to address past grievances and focus on its operations in compliance with regulatory requirements.