Ride-hailing giant agrees to compensate taxi and hire car operators in landmark settlement

Uber has reached a settlement to pay A$271.8 million ($178.3 million; £140 million) to over 8,000 taxi and hire car operators and drivers in Australia. This settlement comes as a resolution to a lawsuit filed by Maurice Blackburn Lawyers, which accused the ride-hailing company of aggressively entering the Australian market and causing significant income loss for traditional taxi services.

The legal battle, which began with the class action filed in 2019 in Victoria’s Supreme Court, marks a significant challenge Uber has faced in its international operations. According to Maurice Blackburn principal lawyer Michael Donelly, this case stands out for its success against Uber, contrasting with similar legal challenges in Victoria, Queensland, and Western Australia that failed against government entities.

Uber, in its statement, highlighted its contributions to state-level taxi compensation schemes since 2018 and expressed a desire to move beyond these legacy issues with the proposed settlement. However, the specifics of the settlement remain undisclosed until finalized and presented to the court for approval.

The settlement underscores the ongoing global debate surrounding the impact of ride-hailing services on traditional taxi industries. Uber, founded in 2009 and now operating in around 70 countries and over 10,000 cities, has frequently encountered resistance and protests from taxi drivers worldwide. This Australian settlement follows a recent victory for Uber in France, where it won a lawsuit brought by 2,500 taxi drivers in December 2023.

The court’s approval of the settlement is pending, and it must be deemed in the best interests of the group members before any payout is made. This case represents a pivotal moment in the ongoing tensions between ride-hailing services and traditional taxi operations, offering a substantial financial outcome for affected drivers and operators in Australia.