Uber ordered in Australia to pay 164 million euros in compensation to taxis
In Australia, chauffeur-driven vehicle (VTC) reservation giant Uber has been ordered to pay 271.8 million Australian dollars (or 164 million euros) in compensation to Australian taxis for lost revenue, their lawyers announced Monday March 18 after five years of legal battle.
The class action against the platform resulted in the fifth largest settlement in the country.
An Uber vehicle stops in front of a taxi rank in Sydney, Monday March 18, 2024. © Rick Rycroft / AP
By: RFI with AFP
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More than 8,000 taxi drivers and rental car owners had filed a class action against the platform, deploring significant losses of income since its arrival on the Australian market in 2012.
This class action resulted in the fifth largest compensation in
Australia
for this type of procedure, said Michael Donelly, director of the law firm Maurice Blackburn Lawyers, which represented them.
“
Uber fought tooth and nail every step of the way, every day, during the five years of this lawsuit, each time trying to deny our class members any form of recourse or compensation for their losses
,” Mr Donelly said.
“
After years of refusal
(...)
Uber has given in
,” he added, praising the way in which “
thousands of ordinary Australians have united to face a global giant
”.
Also read: Undocumented delivery people, poorly paid drivers, when the Uber model falters
“
Series
of shocking actions
”
According to the lawyers, Uber engaged in “
a range of shocking actions
” when it launched in the country, including using “
unlicensed cars with unlicensed drivers
”.
The main plaintiff, Nick Andrianakis, told local media that he was forced to close his taxi business after 40 years in business when Uber launched: “
I lost my passion for work
(...)
and I lost my income that allowed my family to eat
,” he said.
The American platform for booking vehicles with drivers (VTC), which has a stock market valuation of some 157 billion US dollars, did not wish to comment on the amount of compensation.
“
When Uber started more than a decade ago, there were no regulations on ridesharing anywhere in the world, let alone in Australia
,” the group said.
“
Today it’s different, Uber is now regulated in every state and territory in Australia, and governments recognize us as an important part of the country’s transport offering
.”
Also read “Uber Files”: a “failure of the State” for the commission of inquiry
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