Australian taxi drivers win $178-M legal settlement with Uber
SYDNEY—Australian taxi drivers impacted by the rise of ridesharing giant Uber have won $178 million in compensation, their lawyers said Monday after settling a grueling legal battle.
More than 8,000 taxi drivers and hire car owners banded together to launch legal action in 2019, arguing they lost substantial income when Uber entered Australia in 2012.
Lead lawyer Michael Donelly said the A$271.8 million (US$178.3 million) settlement was the “fifth highest class action settlement in Australian legal history.”
“Uber fought tooth and nail at every point along the way, every day, for the five years this has been on foot—trying at every turn to deny our group members any form of remedy or compensation for their losses,” said Donelly, from legal firm Maurice Blackburn.
“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.”
‘Shocking conduct’
Lawyers alleged that Uber engaged in “a variety of shocking conduct” when it launched in the country, including using “unlicensed cars with unaccredited drivers.”
Former lawmaker and taxi driver Rod Barton, a member of the class action, said the settlement vindicated his belief that Uber had knowingly avoided the country’s taxi licensing rules.
“They knew full well they were required to have their drivers and their vehicles fully licensed,” Barton told the Australian Broadcasting Corp.
“They chose not to do that, and they did a lot of things that gave them a commercial advantage against the taxi industry, which established their foothold,” he added.
Regulated
The law was changed in 2015 which allowed Uber to operate without taxi licenses while state governments set up compensation schemes for taxi drivers and license owners.
Taxi driver Nick Andrianakis told reporters he was forced to close his taxi business of 40 years when Uber launched.
“I lost my passion for work … and I lost my income that provided food on the table for my family,” he said.
Uber said it was “inappropriate” to comment on the size of the settlement until it was signed off in court.
“When Uber started more than a decade ago, ridesharing regulations did not exist anywhere in the world, let alone Australia.
“Today is different, and Uber is now regulated in every state and territory across Australia, and governments recognize us as an important part of the nation’s transport mix.”
The US-based company, worth US$157 billion, said it had made “significant contributions” to Australian taxi compensation schemes.
An Uber spokesperson said in an email that “with today’s proposed settlement, we put these legacy issues firmly in our past.” —reports from AFP, REUTERS
