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Uber Settles For $178 Million With Australian Taxi Drivers

By Nithya Bose in Business News, posted March 18, 2024

Uber has agreed to pay 272 million Australian dollars ($178 million) in response to a class-action lawsuit in Australia.

This lawsuit accused Uber of harming the financial stability and careers of taxi and hire-car drivers.

Maurice Blackburn, the law firm advocating for the drivers, called it a “historic world-first class action settlement.”

Uber has faced several international legal battles over issues such as overpricing and the classification of drivers' employment status.

The lawsuit, filed in 2019, represented over 8,000 people within the taxi and hire-car sectors.

According to Blackburn, they claimed financial losses and diminished license values due to Uber's entry into the Australian market.

She said: “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.”

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Although Uber confirmed the proposed settlement, it did not share specific details.

The company says it has contributed to taxi compensation schemes across various states since 2018, arguing that ride-sharing has enriched Australia's transport industry.

Uber also noted the absence of ride-sharing regulations when it launched over a decade ago, highlighting that it now operates under regulation in every Australian state and territory.

A company spokesperson said: “With today’s proposed settlement, we put these legacy issues firmly in our past.

“We will continue focusing on helping the millions of Australians who use Uber to get from A to B in a safe, affordable and reliable manner.”

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