Uber has decided to settle a major lawsuit accusing it of negatively impacting Australian taxi drivers.
Initiated in 2019 by Maurice Blackburn Lawyers, the lawsuit represented more than 8,000 taxi and hire car operators and drivers, claiming that Uber’s aggressive entrance into the Australian market resulted in significant loss of earnings for many.
The company, headquartered in San Francisco, consented to a settlement of A$271.8 million ($178.3 million), marking one of the most substantial legal settlements in Australian legal history, as reported by abc.net.eu.
The legal battle, spanning five years, culminates in a compensation to the law firm ranging from $20 million to $23 million.
Uber, in response to the settlement, commented on the initial absence of ridesharing regulations in Australia and globally when it first entered the market. The company highlighted its contributions to taxi compensation schemes at the state level since 2018 and described the settlement as a closure to these longstanding disputes.
In a related event, Uber recently emerged victorious in a comparable lawsuit in France, where it faced legal action from 2,500 taxi drivers demanding €455 million ($495.4 million) in damages. The Paris commercial court concluded that Uber had engaged in fair competition.
