United States

Uber Agrees To Pay $178 Million To Settle Lawsuit With Australia Taxi Drivers

Uber has agreed to pay $178.3 million to settle a lawsuit with taxi drivers in Australia, resolving claims of income loss amid the ride-hailing giant's aggressive expansion into the country.

Rick Rycroft/ AP
Uber Lawsuit in Australia Photo: Rick Rycroft/ AP

Uber has reached an agreement to settle a lawsuit in Australia for $178.3 million, as reported by a law firm representing taxi operators and drivers.

The class action was filed by Maurice Blackburn Lawyers on behalf of more than 8,000 taxi and hire car owners and drivers. The lawsuit claimed that they experienced a loss of income due to the aggressive expansion of the ride-hailing giant into the country.

"Uber fought tooth and nail at every point along the way," the law firm stated.

In a statement, Uber said, "Since 2018, Uber has made significant contributions into various state-level taxi compensation schemes, and with today's proposed settlement, we put these legacy issues firmly in our past."

The company refrained from disclosing the exact amount of the proposed settlement.

"It would be inappropriate to comment on specifics until the agreement is finalised and the settlement is disclosed to the court," it said.

The class action against Uber was initiated in 2019 in the Supreme Court of Victoria, Australia.

Michael Donelly, principal lawyer at Maurice Blackburn, remarked, "This case succeeded where so many others have failed. In Victoria, Queensland and Western Australia, cases were brought against governments and all of them failed." He added, "What our group members asked for was not another set of excuses - but an outcome - and today we have delivered it for them."

Before any payments can be disbursed, the court must approve the proposed settlement as being in the best interests of the group members.

Uber, headquartered in San Francisco and founded in 2009, operates in over 70 countries and more than 10,000 cities worldwide. It has encountered protests from taxi drivers in numerous cities globally.

In December 2023, the company emerged victorious in a lawsuit brought against it by 2,500 taxi drivers in France.

A commercial court in Paris determined that Uber had not engaged in unfair competition.

The taxi drivers had pursued $495.4 million in damages.