Over 8,000 Australian taxi and hire car drivers have emerged victorious in a class action lawsuit against ride-hailing giant Uber, securing a settlement of A$271.8 million (US$178.3 million).
The class action was filed against Uber in 2019 in the Supreme Court of Australia’s Victoria state. It claimed that Uber’s aggressive expansion into the Australian market significantly impacted the income of taxi drivers. This win represents a major victory for the drivers, particularly considering similar lawsuits against governments in other Australian states were unsuccessful.
Previously, Uber had contributed to state-level taxi compensation schemes. However, this settlement aims to comprehensively resolve all outstanding issues stemming from the company’s entry into the market. While Uber has not admitted any wrongdoing, the substantial settlement amount suggests an acknowledgment of the financial impact on Australian taxi drivers.
In a press statement, the company said, “We will continue focusing on helping the millions of Australians who use Uber get from A to B in a safe, affordable and reliable manner.”
The settlement still requires court approval before any payouts can be made. This is a standard procedure to ensure the agreement is fair and in the best interests of all class members involved in the lawsuit.
Due to this fact, Uber states, “While Uber and the plaintiffs have reached an in-principle settlement, it would be inappropriate to comment on specifics until the agreement is finalised and the settlement is disclosed to the court.”
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Uber Legal Battles
This development comes amidst a history of clashes between Uber and taxi drivers globally. Over the years, Uber’s disruptive business model has faced protests from taxi operators in numerous cities worldwide. Notably, in December 2023, Uber successfully defended itself against a lawsuit filed by 2,500 taxi drivers in France.
Dutch regulators in January imposed a 10-million-euro ($10.8 million) fine on ride-hailing app Uber for lack of transparency in treating the personal data of its drivers. Back in 2019, London transport regulator briefly revoked Uber’s license. This shows the mixed legal landscape surrounding the company’s operations.
The Australian settlement signifies a significant win for taxi drivers in the country and sets a precedent for similar cases against ride-hailing companies. It remains to be seen if this will influence future legal battles between traditional taxi services and the rapidly growing ride-sharing industry.
