Taxi drivers in Australia win US$178 million payout from Uber in legal settlement

Australian taxi drivers affected by the rise of ride-sharing giant Uber have won US$178 million in compensation, their lawyers said on Monday after settling a gruelling legal battle.

Lead lawyer Michael Donelly said the A$271.8 million (US$178.3 million) settlement was the “fifth-highest class action settlement in Australian legal history”.

“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,” said Donelly, from legal firm Maurice Blackburn.

“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.”

Lawyers alleged that Uber engaged in “a variety of shocking conduct” when it launched in the country, including using “unlicensed cars with unaccredited drivers”.

Taxi driver Nick Andrianakis told reporters he was forced to close his taxi business of 40 years when Uber launched.

“I lost my passion for work … and I lost my income that provided food on the table for my family,” he said.

Uber said it was “inappropriate” to comment on the size of the settlement until it was signed off in court.

“When Uber started more than a decade ago, ride-sharing regulations did not exist anywhere in the world, let alone Australia,” it said in a statement.

“Today is different, and Uber is now regulated in every state and territory across Australia, and governments recognise us as an important part of the nation’s transport mix.”

The US-based company, worth US$157 billion, said it had made “significant contributions” to Australian taxi compensation