Uber to Pay $270 Million Settlement in Australian Class Action Lawsuit

Is Uber’s $270 million settlement a step towards resolving the tensions between ridesharing and traditional transportation industries?

Ridesharing giant Uber has agreed to pay over $270 million to settle a class action lawsuit launched by more than 8000 taxi and hire car drivers in Australia. The lawsuit was triggered by Uber’s arrival in the country over a decade ago.

The $271.8 million settlement has come after a five-year class action led by Maurice Blackburn Lawyers. The law firm has decided to drop the case, which was expected to go to trial in the Supreme Court of Victoria.

The class action was initiated by Australian taxi and hire car drivers, operators, and license holders who argued that they suffered financial losses and devaluation of their licenses after Uber entered the Australian market in 2012.

The lawsuit was filed in 2019 and accused Uber of illegally operating in Australia, giving it an unfair advantage over the heavily regulated traditional industry.

Maurice Blackburn Lawyers principal Michael Donelly has revealed that the law firm will receive legal fees amounting to $30-35 million, while the remaining funds will be distributed among the participants of the class action.

However, the approximately $240 million surplus will not be divided equally among all affected taxi and hire car owners. The settlement will take into account the varying degrees of impact experienced by different individuals.

The lawsuit also made allegations that Uber misled regulators and used a ‘kill switch’ to block law enforcement during raids.

Uber has defended itself, pointing out that there were no ridesharing regulations in place anywhere in the world when it began operations over a decade ago.

The company emphasizes that it is now regulated in every state and territory of Australia and has contributed to taxi compensation schemes. Uber sees itself as a key player in Australia’s transport industry, providing new earning opportunities for thousands of workers and enhancing consumer choice and experience.

Uber, which celebrated over 10 years in Australia in 2022, boasts over 700 million rides and 450 million UberEats deliveries. It plans to transition to a zero-emissions company by 2040, requiring electric or hydrogen-powered vehicles in Australia by the end of the next decade.

• Uber settles a class action lawsuit for $271.8 million in Australia.
• The lawsuit was filed by taxi and hire car drivers who claimed to have lost income and value on their licenses due to Uber’s arrival.
• The settlement is the fifth-largest class action settlement in Australian history.

Uber’s $270 million settlement marks a significant resolution to a long-standing class action lawsuit brought by Australian taxi and hire car drivers. Despite the legal battle, Uber has grown to become an integral part of the country’s transportation landscape, offering benefits to consumers and creating new opportunities for workers. With a commitment to sustainability, Uber aims to lead the way in embracing zero-emissions vehicles.