Uber Agrees To Pay $178.3 Million Settlement To Australian Taxi Drivers Following Lawsuit

Uber has reached a settlement agreement amounting to $178.3 million in Australia to resolve a lawsuit filed by taxi operators and drivers, as confirmed by Maurice Blackburn Lawyers, the law firm representing over 8,000 taxi and hire car owners and drivers involved in the case.

The lawsuit alleged that these operators and drivers suffered financial losses due to Uber’s aggressive entry into the Australian market. Maurice Blackburn Lawyers emphasized that Uber vigorously contested the case at every stage.

“Uber fought tooth and nail at every point along the way,” stated the law firm.

In response, Uber acknowledged the proposed settlement in a statement, saying, “Since 2018, Uber has made significant contributions into various state-level taxi compensation schemes, and with today’s proposed settlement, we put these legacy issues firmly in our past.”

However, the company did not disclose the exact amount of the settlement, stating, “It would be inappropriate to comment on specifics until the agreement is finalised and the settlement is disclosed to the court,” it said.

The class action was initiated against Uber in 2019 in the Supreme Court of Australia’s Victoria state.

Michael Donelly, principal lawyer at Maurice Blackburn, hailed the success of the case, highlighting its significance in contrast to previous failed attempts against governments in Victoria, Queensland, and Western Australia.

“This case succeeded where so many others have failed. In Victoria, Queensland and Western Australia, cases were brought against governments and all of them failed,” said Donelly, expressing satisfaction with the outcome.

However, before any payout can be disbursed, the court must approve the proposed settlement as being in the best interests of the group members involved.

Based in San Francisco and founded in 2009, Uber operates in over 70 countries and more than 10,000 cities worldwide. Despite its global presence, the company has faced protests from taxi drivers in various cities.

Notably, in December 2023, Uber prevailed in a lawsuit brought by 2,500 taxi drivers in France, with a Paris commercial court ruling in favour of Uber, rejecting claims of unfair competition where the taxi drivers had sought €455 million in damages.

Ozioma Samuel-Ugwuezi

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