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

  • More than 8,000 taxi drivers and hire-car owners banded together to launch a class action against the US ride-sharing giant in 2019
  • Lawyers alleged that Uber engaged in ‘shocking conduct’ when it launched in Australia, including using ‘unlicensed cars with unaccredited drivers’

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A pedestrian walks past a row of taxis in central Sydney on Monday. Uber entered Australia in 2012. Photo: AFP

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.

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More than 8,000 taxi drivers and hire-car owners banded together to launch legal action in 2019, arguing they lost substantial income when Uber entered Australia in 2012.

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.”

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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.

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