An Expensive Journey Down Under
Uber Technologies Inc has reportedly reached a settlement of A$271.8 million ($178 million) with Australian taxi operators and drivers who sued the ride-hailing company for lost income when it entered the market.
The Legal Road Less Traveled
Maurice Blackburn Lawyers reported that this settlement is Australia’s fifth-largest, marking a significant resolution to a class action suit filed in 2019 on behalf of over 8,000 taxi and hire car owners and drivers. The lawsuit accused Uber of violating laws that required taxis and hire cars to hold licenses.
A Past Haunting the Present
An Uber spokesperson mentioned in an email that the company had been contributing to state-level taxi compensation schemes since 2018, and viewed this settlement as a way to finally close the chapter on these past issues. Maurice Blackburn Principal Michael Donelly noted, “Uber resisted all the way. After years of avoiding responsibility for the harm caused, Uber has finally relented.”
Reflecting on the Road Travelled
Former lawmaker and taxi driver Rod Barton, who was part of the class action, expressed disappointment stating, “They knowingly operated without meeting licensing requirements, giving them an unfair advantage over the taxi industry, which ultimately solidified their presence.”
Changing Scenery and Legal Landscape
Uber first entered the Australian market in 2012. In response to the changing landscape, in 2015, authorities amended laws to allow Uber to operate without traditional taxi licenses, while state governments initiated compensation schemes for affected taxi drivers and license owners.
Also Read: After Minimum Pay Rule Passes, Uber and Lyft Threaten To Leave Minneapolis
Market Response
UBER shares are trading higher by 0.46% at $76.42 premarket as of the latest check on Monday.
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