Uber to pay £130m in landmark settlement to Australian taxi drivers

Uber will pay nearly £130 million as compensation to taxi drivers and rental car drivers who suffered losses due to the company's aggressive entry into the Australian market, announced the law firm Maurice Blackburn Lawyers.

This settlement is the fifth largest in Australia, the firm stated in a release. The class action lawsuit was filed in 2019 at the Supreme Court of Victoria (in the state of Victoria) on behalf of more than 8,000 taxi owners, rental car owners, and drivers.

Uber was accused in the lawsuit of violating regulations that required the licensing of taxis and cars. It was supposed to be considered on Monday, 18 March, but Judge Lisa Nichols canceled it when the company agreed to a settlement.

According to the lawsuit, Uber's entry into the market in 2012 led to reduced income for licensed taxi drivers and a decrease in the value of the licenses they owned.

The lawyers argued that Uber X was introduced to Australia with the intention of harming local taxi drivers and rental car drivers. They claimed the company also used illegal cars with unaccredited drivers.

Uber insists, however, that it never knowingly broke the law. An Uber spokesperson told Reuters that the company has supported regional compensation programs for taxi drivers since 2018. The complaints filed by taxi drivers and rental car drivers, which were the subject of the class action, he described as "issues of the past."

"Thanks to today's proposed settlement, we can leave these issues far behind us," he concluded in an interview with Reuters.

In 2015, regulations were amended, allowing Uber to operate without needing taxi licenses, while state governments introduced compensation programs for taxi drivers and license holders.

"Uber fiercely fought at every stage of the proceedings," stated Michael Donelly, a lawyer at Maurice Blackburn, in a statement. "After years of continuously refusing to take proper action towards those who - as we argued - were harmed, Uber finally gave in," he added.

Former MP and driver, Rod Barton, a member of the plaintiff side, said that the settlement reinforced his belief that Uber knowingly bypassed existing licensing regulations for taxis.

"They knew they were required to have fully licensed drivers and vehicles," Barton stated in an interview with Australian broadcaster ABC. "They chose not to do that and took many actions that gave them a commercial advantage over the taxi industry, which solidified their position," he added.

Original plaintiff Nick Andrianakis, a long-time taxi driver, meanwhile, told The Guardian that the settlement is a victory for the industry after it was "demolished" by Uber's actions.