Uber pays $178M to settle conflict with Australian taxi drivers
Uber has agreed to a pay $178 million to resolve a long-standing disagreement with taxi and private hire car drivers in Australia. The settlement arrives on the brink of a class action lawsuit against the ride-hailing company, which was due to commence in the Supreme Court of Victoria. The lawsuit, initiated by Maurice Blackburn Lawyers on behalf of 8,000 drivers, will now be dismissed due to this financial resolution.
Drivers faced setbacks due to Uber's market invasion
Michael Donelly, the lead lawyer at Maurice Blackburn, expressed that the financial setbacks suffered by drivers and vehicle owners were directly linked to Uber's invasive entry into the Australian market in 2012. He further alleged that Uber had persistently attempted to dodge compensating these individuals. "Uber has blinked, and thousands of everyday Australians joined together to stare down a global giant," Donelly stated, underlining the united effort behind this legal triumph.
Uber refers to legal complaints as 'legacy issues'
Reacting to the lawsuit settlement, Uber issued a statement labeling the grievances from the taxi industry as 'legacy issues.' The rideshare firm underscored that when it was established over 10 years ago, there were no existing rideshare regulations anywhere worldwide. The statement also stressed that the advent of ridesharing has broadened Australia's point-to-point transport sector by providing more choices for consumers. It further argued that this change in market generated new income avenues for hundreds of thousands of Australian workers.
Uber's settlement ranks as fifth-largest class action in Australia
This settlement stands as the fifth-largest class action resolution in Australia's history. It follows five years after legal action was first taken against Uber. The company also pointed out that since 2018, it has made substantial contributions to multiple state-level taxi compensation schemes. With this proposed settlement, Uber intends leave these legal tussles in the past and march forward.
