After a protracted legal struggle, Australian taxi drivers affected by the growth of ridesharing behemoth Uber were awarded US$178 million in compensation, their attorneys announced on Monday.
In 2019, over 8,000 taxi drivers and rental car owners united to file a lawsuit, claiming that when Uber arrived in Australia in 2012, they suffered significant financial losses.
The payment amounting to A$271.8 million (US$178.3 million), according to lead attorney Michael Donelly, is 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.”
Attorneys claimed Uber used “unlicenced cars with unaccredited drivers” and engaged in “a variety of shocking conduct” when it first opened in the nation.
When Uber began, 40-year taxi driver Nick Andrianakis told reporters he was forced to close his operation.
“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 recognise us as an important part of the nation’s transport mix.”
The US-based business, which is valued at US$157 billion, claimed to have “significantly contributed” to the taxi compensation schemes in Australia.
