Historic Class Action Settlement Sees Uber Agree to Pay Australian Taxi Drivers $272 Million
Lawyers representing the plaintiffs claim that the global ride-sharing company fought vigorously to avoid compensating the taxi industry for its losses.
Uber has agreed to pay $272 million (US$178 million) to Australian taxi drivers, making it the fifth-largest class action settlement in Australian legal history, according to the plaintiffs’ lawyers.
Maurice Blackburn Lawyers revealed that the Supreme Court of Victoria will convene on March 18 to finalize a case that originated in 2019 with a single Melbourne taxi driver, Nicos Andrianaki, but eventually included over 8,000 other taxi and charter vehicle drivers.
The drivers alleged a loss of income and a decrease in license value when Uber introduced cheaper and more convenient services without proper licensing. The trial was scheduled until May 17, but Uber opted to settle.
Principal Michael Donelly from Maurice Blackburn Lawyers stated in a release that Uber resisted every step of the way over the five-year legal battle, attempting to deny compensation to the affected group. However, Uber eventually agreed to settle on the courtroom steps, bringing justice to the affected individuals.
Mr. Donelly also mentioned that the settlement ranks among the top five class actions in Australian legal history.
“We are incredibly proud that thousands of individuals placed their trust in us and Nick Andrianakis, allowing us to hold accountable major corporations that caused significant harm,” he remarked. “The $271.8 million settlement will finally provide substantial compensation to those who have suffered losses.”
In 2012, Uber started operating in Sydney unlawfully, triggering protests from the taxi industry. Legal provisions for ride-sharing services were later introduced in the Australian Capital Territory, New South Wales (NSW), and the rest of the country.
In NSW, the government imposed a $1 levy per trip for up to five years to compensate taxi license owners.
Holders of taxi licenses were promised immediate compensation of $20,000 for up to two licenses. Those who purchased licenses in 2015 were entitled to a maximum compensation of $175,000. However, individuals who acquired licenses before 2006 received no compensation.
Speaking to ABC News in 2019, Mr. Andrianakis expressed how Uber’s emergence affected his taxi business and family tradition. He described how Uber disrupted the industry and led to his realization that “the taxis are finished.”
