Uber, a global ridesharing giant, has agreed to pay $178 million in compensation to Australian taxi drivers and hire car owners who lost substantial income after Uber entered the country in 2012. The settlement, which is the fifth highest class action settlement in Australian legal history, was reached after more than 8,000 taxi drivers and hire car owners banded together to launch legal action against Uber in 2019.
Lead lawyer Michael Donelly from Maurice Blackburn said that Uber fought tooth and nail at every point during the five-year legal battle, trying to deny compensation for the losses suffered by their group members. However, Donelly stated that Uber’s refusal to do what was right ultimately led them to blink and settle with the group of everyday Australians.
Uber’s lawyers alleged that the company engaged in “a variety of shocking conduct” when it launched in Australia, including using “unlicensed cars with unaccredited drivers.” Taxi driver Nick Andrianakis told reporters that he was forced to close his taxi business of 40 years due to Uber’s arrival. He stated that he lost his passion for work and his income that provided food on the table for his family.
Uber said it was “inappropriate” to comment on the size of the settlement until it was signed off in court. However, they did say that when they started more than a decade ago, ridesharing regulations did not exist anywhere in the world, let alone Australia. Today, Uber is regulated in every state and territory across Australia, and governments recognize them as an important part of the nation’s transport mix. Additionally, Uber said they had made significant contributions to Australian taxi compensation schemes.
Overall, this legal battle highlights how ridesharing companies can have a significant impact on traditional taxi businesses and their workers. It also serves as a reminder that even powerful corporations can be held accountable for their actions through collective efforts by those affected by their actions.
