Uber is set to pay $271.8 million to over 8,000 taxi and hire car drivers across Australia, marking the end of a five-year legal battle that challenged how the rideshare giant first entered the country. With the window to appeal now closed, the settlement, already approved by the Supreme Court of Victoria, will proceed.
The class action, filed in 2019 by Maurice Blackburn Lawyers, accused Uber of operating unlawfully when it launched its UberX service in Australia in 2012. At the time, ridesharing was unregulated. Uber offered trips through unlicensed vehicles and unaccredited drivers, causing chaos for an industry governed by strict state controls.
Drivers and operators who had invested heavily in taxi licences, some costing as much as $500,000 in Victoria, saw their livelihoods upended. One of them, Melbourne’s Nicos Andrianakis, lost the value of three licences and joined the legal action as lead plaintiff. His story reflects the wider pain felt across the sector, particularly among family-run operators who watched their business models collapse almost overnight.
The lawsuit claimed Uber used geoblocking and misled regulators to avoid detection, allowing it to expand rapidly while traditional operators faced strict rules and rising costs. Plaintiffs argued that this amounted to a conspiracy by unlawful means designed to edge them out.
After years of legal wrangling, Uber agreed in March 2024 to a $271.8 million settlement, one of the largest class action payouts in Australian history. Although the agreement was finalised months ago, payments to drivers have yet to begin. Of the total sum, $38.7 million will go towards legal costs for Maurice Blackburn, leaving approximately $233.1 million to be distributed among the claimants.
With more than 8,000 drivers and operators eligible, average payments are expected to hover around $29,137 per person after legal fees. Actual amounts will vary depending on how much each individual lost, whether through devalued licences, reduced income, or other disruptions to their business.
While many have welcomed the outcome as a hard-earned victory, others say it falls short of the damage done. Former Victorian MP and taxi operator Rod Barton, who helped initiate the lawsuit, said the settlement is welcome but pointed to the broader failures in government oversight. Speaking to ABC Radio Melbourne, he said the story is not over yet. “This is about how they got into the market, but make no mistake, we’re going to have to talk to the government about their role.”
Uber has described the issue as legacy. It notes that ridesharing was unregulated when it began operating in Australia and emphasised that the company is now licensed in all states and territories. Since 2018, Uber has also contributed to state-run compensation schemes for the taxi industry. In a statement, the company said, “With today’s proposed settlement, we put these legacy issues firmly in our past.”
Uber has since shifted towards closer integration with the taxi sector, including listing licensed taxis on its app in Melbourne since late 2023. It now faces a regulated market and rising competition from other players like DiDi and Ola.
Some critics argue the settlement avoids deeper scrutiny of Uber’s early conduct. A full trial might have revealed more about the company’s tactics during its initial push into the market. While this deal spares Uber that exposure, many believe the amount it will pay is modest when compared to what drivers lost.
Victorian operators alone estimated over $500 million in damages back in 2019. State governments, particularly New South Wales, have already poured far more into their own compensation schemes. NSW’s fund has climbed to $905 million, partly covered by a $1.20 levy on all rideshare and taxi trips.
Queensland has run its own $100 million support package, offering $20,000 per licence holder. These figures raise questions about whether the private sector or the public purse has done more to fix the damage.
As for the drivers, the money, when it arrives, will not restore the old business models. Nor will it erase the sense of injustice many still feel. But for some, it is a long-awaited acknowledgement that something was wrong.
“This is a win for small businesses of mum and dad investments, a win for taxi drivers, taxi operators, and hire car operators,” one plaintiff told the ABC. It is a moment of closure, if not full repair.
And for Uber, it closes another chapter in a global story that keeps circling the same questions. What happens when innovation races ahead of regulation? And who ends up paying the price?
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🚖 @Uber to pay $271.8M to 8,000+ Aussie #taxidrivers after landmark class action. 💰 Settlement ends 5-year battle over #UberX's 2012 unlicensed launch. Avg payout ~$29K per driver. Calls grow for govt accountability. #TheIndianSun
🔗 https://t.co/eDYV4lWvC4 pic.twitter.com/LSUwNXPqlU
— The Indian Sun (@The_Indian_Sun) July 17, 2025
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