Uber Technologies Inc
The taxi drivers claimed they lost income when the ride-hailing company moved into the country, reported Reuters.
This is Australia's fifth-largest settlement, as per Maurice Blackburn Lawyers. The class action suit was filed in 2019 in the Supreme Court of Victoria state on behalf of over 8,000 taxies and hire car owners and drivers, accusing Uber of breaking laws requiring taxis and hire cars to be licensed.
The report cited an Uber spokesperson who said in an email that the company had contributed to state-level taxi compensation schemes since 2018, "and with today's proposed settlement, we put these legacy issues firmly in our past."
As per the report, Maurice Blackburn Principal Michael Donnelly said, "Uber fought tooth and nail at every point along the way. After years of refusing to do the right thing by those we say they harmed, Uber has blinked."
The report further cited former lawmaker and taxi driver Rod Barton, a member of the class action, as saying, "They knew full well they were required to have their drivers and their vehicles fully licenced...They chose not to do that, and they did a lot of things that gave them a commercial advantage against the taxi industry, which established their foothold."
Notably, Uber forayed into Australia in 2012, and the authorities changed the law in 2015, which allowed Uber to operate without taxi licenses while state governments set up compensation schemes for taxi drivers and license owners.
Price Action: UBER shares are trading higher by 0.46% at $76.42 premarket on the last check Monday.