Australian taxi drivers, severely impacted by the rise of ride-hailing giant Uber, have secured a staggering $178 million in compensation, according to their lawyers, following a settlement that brings an end to a years-long legal battle.
Over 8,000 taxi drivers and hire car owners joined forces to launch legal proceedings in 2019, alleging that they suffered significant income losses when Uber entered the Australian market in 2012, according to AFP.
Lead lawyer in the case, Michael Donnelly, stated that the $271.8 million AUD ($178.3 million USD) settlement represented “the fifth-largest class action settlement in Australian legal history.”
Donnelly, from Maurice Blackburn Lawyers, explained that Uber had “fought tooth and nail at every point along the way, every day, for the past five years, and tried to deny our class members any form of resolution or compensation for their losses at every turn.”
“But on the courthouse steps, and after years of prevarication from those we say caused the harm, Uber backed down, and thousands of ordinary Australians stood together to face down a global giant,” he added.
Lawyers contended that Uber had engaged in a “range of shocking conduct” when it first launched in the country, including using “unlicensed cars with uncertified drivers.”
Taxi driver Nick Andriani told reporters that he was forced to close his 40-year-old taxi business after Uber’s arrival.
“I lost my passion for the job… and I lost the income that supported my family,” he remarked.
Uber, however, maintained that it was “inappropriate” to comment on the settlement amount until it is signed off in court.
The company stated: “When Uber started operations over a decade ago, ride-sharing regulations were non-existent anywhere in the world, let alone Australia.”
It pointed out that “the landscape has changed today, and Uber is now regulated in every state and territory across Australia, and governments recognize us as an important part of the country’s transport services.”
The US-based company, valued at $157 billion, claimed it had “made significant contributions” to Australian taxi compensation programs.
