Uber agrees to pay Australian taxi operators $272 million in class action settlement
Uber will pay $272 million to Australian taxi and hire car drivers for income and license loss.he settlement is the fifth largest in Australian class action history, the lawyers behind the case say.
According to the lawyers involved, the settlement ranks as the fifth largest in Australian class action history.
The payment to the plaintiffs is contingent upon formal approval from the Supreme Court of Victoria.
Uber has agreed to pay $271.8 million to Australian taxi and hire car drivers, operators and licence holders to compensate them for losing income and licence values when the rideshare giant moved into the Australian market.
The Uber class action trial in the Supreme Court of Victoria was scheduled for Monday, but Judge Lisa Nichols canceled it when Uber agreed to a massive settlement.
It was the fifth-largest class action settlement in Australian history and one of the most successful class actions against Uber, the lawyers behind the case said.
Uber has agreed to pay $271.8 million to Australian taxi and hire car drivers, operators and licence holders to compensate them for losing income and licence values when the rideshare giant moved into the Australian market.
Uber has agreed to pay $271.8 million to Australian taxi and hire car drivers, operators and licence holders to compensate them for losing income and licence values when the rideshare giant moved into the Australian market.
The class action against Uber was expected to go to trial in the Supreme Court of Victoria on Monday but Judge Lisa Nichols vacated it after the rideshare giant agreed to the colossal settlement.
It was the fifth-largest class action settlement in Australian history and one of the most successful class actions against Uber, the lawyers behind the case said.UU
“But on the courtroom steps and after years of refusing to do the right thing by those we say they harmed, Uber has blinked, and thousands of everyday Australians joined together to stare down a global giant,” Mr Donelly said.
This case managed to succeed where countless others had failed. In Victoria, Queensland and Western Australia, cases were brought against governments and all of them failed, he said.
“What our group members asked for was not another set of excuses – but an outcome – and today we have delivered it for them.”
Mr Donelly said the settlement would put “beyond any doubt” that Uber had been held accountable.
The fees for Maurice Blackburn will be split between $30 million and $35 million, while the rest will be distributed among the plaintiffs. Unequal distribution of money is necessary as certain members incurred more substantial financial losses.
Uber asserted that there were no ridesharing regulations in any part of the world, including Australia, when they first launched.
“Today is different, and Uber is now regulated in every state and territory across Australia, and governments recognise us as an important part of the nation’s transport mix,” the statement read.
“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.”
‘Conspiracy by unlawful means’
Over 8,000 taxi and hire car owners are included in the class action suit, which was filed in 2019.
According to the lawsuit, Uber Australia and its parent companies deliberately violated the law, gaining an unfair advantage over law-abiding taxi and hire car drivers.
Uber’s ‘kill switch’ was successful in stopping raids, as shown in the files.
The documents reveal that Uber sought to influence politicians in relaxing labor and taxi regulations, and even explored using violence against its drivers to generate public support.
“Our key allegation is that in launching UberX, Uber used unlicensed cars and unaccredited drivers. Uber said that was innovation, we said it was illegal, a conspiracy by unlawful means,” Mr Donelly said.
The company provides a private car service called UberX, as well as a car-pooling service.
The lawsuit claimed that Uber deceived regulators, restricted authorities’ access, and utilized a “kill switch” to impede law enforcement.
In 2022, leaked documents called the Uber files disclosed that Uber utilized similar methods to establish its presence in nearly 30 countries.
The settlement was hailed as a win for small businesses, taxi drivers, and hire car operators by lead plaintiff Nick Andrianakis, a former taxi driver.
“I’ve lost my passion for work. I lost my [taxi licence] plates that were half a million dollars each. And I lost my income that provided food on the table for my family,” he said, adding he had lost more than $1 million in total.
