In a significant development for Uber amid ongoing regulatory and legal challenges in the ride-hailing industry, the company has reached a settlement agreement to pay A$271.8m ($178.3m; £140m) to resolve a lawsuit filed by taxi operators and drivers in Australia. The class action was brought on behalf of over 8,000 taxi and hire car owners and drivers who claimed to have lost income due to Uber’s aggressive entry into the Australian market. Maurice Blackburn Lawyers, the law firm representing the group, announced the settlement after Uber acknowledged it had contributed to state-level taxi compensation schemes since 2018.
Michael Donelly, Maurice Blackburn’s principal lawyer, emphasized the significance of delivering a favorable outcome for the group members involved in the lawsuit against Uber before any payments can be made. The court must approve the proposed settlement to ensure it aligns with their best interests. Uber is headquartered in San Francisco and established in 2009, operating in numerous countries and cities globally, facing occasional protests and legal challenges from taxi drivers.
In December 2023, Uber prevailed in a lawsuit brought by thousands of taxi drivers in France, but it continues to address legal issues in various markets worldwide. This successful outcome marks an important step forward for Uber as they continue to navigate ongoing regulatory and legal challenges in the ride-hailing industry.
The class action against Uber was commenced in 2019 in Victoria state’s Supreme Court of Australia. The resolution of this case is expected to be seen as a significant victory for those who have been affected by Uber’s entry into the Australian market.
In conclusion, this settlement agreement is an important development for both Uber and its competitors within the ride-hailing industry as they work towards resolving ongoing regulatory and legal challenges that continue to impact their businesses worldwide.