Uber, the rideshare behemoth, has been compelled to shell out nearly KSh 36.72 billion ($272 million) in compensation to taxi and hire-car drivers in Australia due to its aggressive market entry tactics.
The settlement, amounting to approximately KSh 36.72 billion, comes after a grueling five-year legal battle spearheaded by Maurice Blackburn Lawyers on behalf of over 8,000 affected taxi and hire-car owners and drivers.
The legal saga, which was set to proceed to trial in the supreme court of Victoria, was abruptly halted as Uber consented to the massive settlement, marking it as the fifth-largest class-action settlement in Australia’s history.
The drivers and car owners, who suffered significant income losses and depreciation in license values, were embroiled in a contentious battle as Uber adamantly resisted providing compensation.
Lead plaintiff Nick Andrianakis, a seasoned taxi driver, hailed the settlement as a victory for the industry, which had been severely impacted by Uber’s aggressive market maneuvers.
Uber, however, attempted to downplay the significance of the complaints raised by taxi and hire-car drivers, labeling them as “legacy issues” stemming from the early days of its operations.
Despite the legal victory, another legal proceeding initiated by Taxi Apps Pty Ltd is still ongoing and is slated to proceed to trial in the near future.
The proposed settlement, subject to formal approval by the supreme court, signifies a pivotal moment for the Australian taxi and hire-car industry, which has endured the disruptive forces unleashed by Uber’s entry into the transportation landscape.
