KEY TAKEAWAYS
- Uber Technologies reportedly will pay $272 million Australian dollars ($178 million) to settle a class-action lawsuit brought by thousands of Australian taxi drivers.
- The Australian lawsuit, filed in 2019, was on behalf of more than 8,000 taxi and hire-car owners and drivers who alleged they lost income when Uber entered the market.
- Uber declined to comment on specifics of the settlement until the agreement is finalized.
Uber Technologies Inc. (UBER) reportedly will pay AUD$272 million ($178 million) to settle a class-action lawsuit brought by thousands of Australian taxi drivers, who allege they lost income when the ride-sharing company entered the country.
The Australian lawsuit, filed in 2019, was on behalf of more than 8,000 taxi and hire-car owners and drivers who lost income and license values when Uber moved into the Australian market, according to The Wall Street Journal, which cited the law firm representing the drivers.
The law firm, Maurice Blackburn Lawyers, called it a “historic world-first class action settlement,” the Journal said.
“Since 2018, Uber has made significant contributions into various state-level taxi compensation schemes, and with today’s proposed settlement, we put these legacy issues firmly in our past,” Uber said in a statement.
The ride-hailing app said that while it has reached an in-principle settlement, it “would be inappropriate to comment on specifics until the agreement is finalised and the settlement is disclosed to the court.”
Shares of Uber were down 1.5% at $74.89 as of 10:14 a.m. ET Monday but have gained more than 28% in 2024.