Uber Agrees to $178 Million Settlement with Australian Taxi and Private Hire Car Drivers

Uber has agreed to pay $178 million to resolve a longstanding dispute with taxi and private hire car drivers in Australia. The settlement comes just before a class action lawsuit against the ride-hailing company was set to begin in the Supreme Court of Victoria. The lawsuit, which was initiated by Maurice Blackburn Lawyers on behalf of 8,000 drivers, will now be dismissed due to the financial resolution.
Michael Donelly, the lead lawyer at Maurice Blackburn, stated that the financial difficulties faced by drivers and vehicle owners were directly linked to Uber’s entry into the Australian market in 2012. He also alleged that Uber had consistently tried to avoid compensating these individuals. Donelly emphasized the collective effort behind this legal victory, stating, “Uber has blinked, and thousands of everyday Australians joined together to stare down a global giant.”
In response to the settlement, Uber released a statement referring to the taxi industry’s grievances as “legacy issues.” The company highlighted that when it was founded over 10 years ago, there were no rideshare regulations anywhere in the world. The statement emphasized that ridesharing has expanded Australia’s point-to-point transport sector by offering more choices for consumers. It further argued that this market change has created new income opportunities for hundreds of thousands of Australian workers.
This settlement is the fifth-largest class action resolution in Australia’s history and comes five years after legal action was first taken against Uber. The company also noted that since 2018, it has made significant contributions to various state-level taxi compensation schemes. With this proposed settlement, Uber aims to put these legal disputes behind it and move forward.