In one of the biggest class-action settlements ever, Uber has agreed to pay compensation of $271.8 million to taxi and hire-car drivers due to the lost income from Uber’s move into Australia. It was the climax of a long-running class-action lawsuit after which the ride-sharing company agreed to pay cab and hire-car drivers the money they deserve.
The lawsuit was scheduled to go to the Supreme Court of Victoria on Monday. However, Judge Lisa Nichols annulled the proceedings after Uber agreed to pay almost $272m as compensation to the aggrieved drivers who were at a financial loss due to the aggressive entry of Uber into the Australian market.
The lawsuit was instituted by Maurice Blackburn Lawyers five years ago and represented more than 8,000 taxi and hire-car owners and drivers, and the settlement in the case will go down as the fifth largest class-action settlement in Australia’s history.
The lawsuit had alleged that Uber’s aggressive entry into the Australian market led to severe loss of income as well as license values for the drivers and the car owners. The lawsuit also alleged that Uber had employed unlicensed cars with unaccredited drivers and also hoodwinked the regulators and geoblocked authorities. Uber had used every ploy to deny them compensation at every stage, according to Maurice Blackburn principal lawyer Michael Donelly.
However, the settlement has to be approved by the Supreme Court before the drivers receive their compensations. Donelly called the settlement a watershed moment, especially for the drivers and the owners who have been in the business for generations.
The Australian taxi and hire-car business is also a landing spot for Australians who want to get an economic hold. This process was disrupted when Uber rolled into Australia and started its aggressive push, which threatened the livelihood of thousands who were in the sector. The class action was needed to defend the drivers and the owners who have been in the business for generations. Nick Andrianakis, a former longtime taxi driver, dubbed the settlement as a win for the industry. There is another non-class action lawsuit which has been brought by Taxi Apps Pty Ltd and is expected to go to trial in the coming weeks.
Rideshare regulations were not there anywhere in the world when Uber came into existence more than a decade ago. However, today Uber is regulated in almost all states in Australia. Ridesharing, according to a spokesman of Uber, is growing and is there for the benefit of the riders.
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