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

Uber has reached a significant agreement to settle a class-action lawsuit brought by Australian taxi operators and drivers, agreeing to pay A$271.8 million (US$178 million), as reported on Monday.

This settlement, regarded as the fifth-largest in Australia’s legal history, concludes a lengthy legal dispute that began in 2019.

The lawsuit, filed on behalf of over 8,000 taxi and hire car owners and drivers, alleges that Uber’s entry into the Australian market caused substantial financial harm to traditional taxi operators, breaching regulatory requirements.

Lead lawyer Michael Donelly from Maurice Blackburn Lawyers hailed the settlement as a major victory for the affected drivers and operators, highlighting Uber’s strenuous resistance throughout the five-year legal battle.

Donelly emphasized that the settlement provides some compensation for the losses suffered by the plaintiffs, who had been denied restitution for years.

According to the lawsuit, Uber’s arrival in the Australian market in 2012 disrupted the taxi industry, resulting in reduced revenue for licensed taxi drivers and a devaluation of taxi licenses.

The plaintiffs argued that Uber operated unlawfully, flouting regulations mandating licenses for taxis and hire cars, which conferred an unfair advantage to the company.

Uber maintained that it had not knowingly violated any laws.

Former lawmaker and taxi driver Rod Barton, a member of the class action, asserted that Uber had intentionally circumvented Australia’s taxi licensing regulations to gain a competitive edge.

The settlement, Barton believes, validates the claims made by the plaintiffs and underscores the importance of accountability in the transportation sector.

This agreement represents a significant development in the ongoing discourse concerning the regulation of ridesharing services in Australia.

With the rise of platforms like Uber, traditional taxi operators have faced increasing challenges, prompting calls for regulatory reforms to ensure fairness.

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