Biplab Das 
Uber has settled a class-action Australian lawsuit offering substantial compensation of AUD 271.8 million (USD 178 mn). The final meadow has been settled by Australia in lieu of a taxi operators and drivers who lodged a complaint blaming Uber for income loss because of its entry to the market. The settlement is the fifth highest class-action compensation scheme in Australia.
Background of the lawsuit
The instance of class action court proceeding was brought to the Supreme Court of Victoria state in 2019 on behalf of over 8000 taxi and car service drivers and owners. They filed complaints to Uber that the company had broken down the legislation which required taxi licenses and hire car licensing, therefore their revenue had been decreased and their licence devalued by the entry of the company in 2012.
Uber’s response
Uber, under the deal, however, is not admitting violation of any knowingly law, however is subjected to the hefty settlemant package. Contrary to Uber’s CEO’s assertion, the company’s lobbyist mentioned that the support for the state-level taxi compensation schemes started in 2018 that was designed to have legal disputes amongst the concerned parties.
Legal battle and settlement
Maurice Blackburn Lawyers, as counsel for the plaintiffs, outlined the fact that Uber kept on a tight defence during the whole legal progress. Principal Michael Donelly noted that Uber reluctantly agreed to compliancy only after the recent settlement. His statement suggests that the resolution is an important step to get fair competition among the taxicab operators and drivers.
Implications and perspectives
The former lawmaker and a city’s taxi driver, Rod Barton who was supposed to be a representative in the Class Action is highly optimistic that the settlement reached is a validation that Uber did not adhere to the licence to operate. Barton pointed out how Uber turned this ace of the game to its advantage by ignoring the requirements of the traditional industry.
Uber’s regulatory challenges
Uber’s entrance to Australia was by no means a smooth process, having faced regulatory hurdles. The owners had been accused of evading licensing requirements which had consequently attracted a public outcry. The legal case that followed symbolize the multiple challenges that the platform-based taxi services has to face when operating in the space of taxis which are traditional.
The settlement proposal by Uber is seen as the company’s concession to considerable ancient discontents coupled with attempts to remedy legacy challenges in the transport scene currently in Australia. Such a resolution may provide the closing of the page in the events calendar, however, it refill this window as digital era brings about a constant evolution of the applicable frameworks.
