Uber Pays Nearly RM1.2 billion to Compensate Taxi and Hire Car Drivers

Uber has agreed to pay nearly $272 million (RM1,284,520 000) to compensate taxi and hire car drivers affected by its aggressive entry into the Australian market. Maurice Blackburn Lawyers announced that the class action against Uber, expected to go to trial at the Supreme Court of Victoria, would be abandoned after the rideshare company agreed to the substantial settlement.

This settlement, the fifth-largest in Australia’s history, represents a significant victory for more than 8000 taxi and hire car owners and drivers who suffered financial losses due to Uber’s market entry. Maurice Blackburn principal lawyer Michael Donelly described the five-year legal battle as “gruelling” and emphasised how Uber had attempted to deny compensation to those affected.

Donelly highlighted Uber’s resistance to taking responsibility for the harm caused to drivers and car owners. However, with the settlement, Uber has conceded, allowing thousands of Australians to receive compensation for their losses. Donelly expressed pride in successfully holding Uber accountable and securing a substantial sum that would provide real relief to those affected.

The success of this class action is notable, particularly considering previous failed attempts in other jurisdictions. Despite challenges in Victoria, Queensland, and Western Australia, Maurice Blackburn’s efforts have prevailed, leading to this significant settlement. The law firm anticipated formal abandonment of the trial in court on Monday morning.

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