Uber settles with 8,000 Australian taxi operators for $272 million in landmark class action payout
In a groundbreaking settlement, Uber has agreed to pay $271.8 million to taxi and hire car drivers, operators, and licence holders in Australia.
This settlement marks one of the most substantial legal victories globally against the ride-sharing giant and ranks as the fifth largest class action settlement in the history of Australian legal proceedings.
The class action, initiated by Maurice Blackburn Lawyers in 2019 on behalf of over 8,000 affected individuals, aimed to address the financial losses incurred due to Uber's aggressive market entry strategies. The legal pursuit spanned five challenging years, characterised by Uber's persistent attempts to rebuff compensation claims.
Michael Donelly, a principal at Maurice Blackburn Lawyers, highlighted the relentless legal struggle, culminating in Uber's eventual concession. According to Donelly, the settlement not only signifies a remarkable achievement for the plaintiffs but also highlights Uber's accountability for its business practices.
The case stands out as a rare success story in a field where similar actions against Government entities in Victoria, Queensland, and Western Australia have faltered.
Mr Donelly said: “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.
“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.”
“This will be one of the top five class action settlements in Australian legal history – putting beyond any doubt that Uber has been held to account for its actions.
“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. What our group members asked for was not another set of excuses – but an outcome – and today we have delivered it for them.
“We are extremely proud that thousands of people put their faith in us and Nick Andrianakis and allowed us to do what we do best – holding to account major organisations that we say inflicted mass wrongs on people.
“And we are extremely proud to have succeeded today in holding Uber to account, in securing the fifth largest ever class action recovery in Australian history for our clients, a $271.8 million sum that will finally put real money back into the accounts of people who have been devastated.”
