Uber Faces Major Australian Class Action Over Alleged Illegal Operations
Around 6,000 Australian taxi and hire car drivers are suing Uber, claiming the ride-hailing giant's past unlawful operations caused severe drops in their income and license values.
Uber faces a massive class action lawsuit in Australia just as it prepares to go public. Law firm Maurice Blackburn files the suit on behalf of approximately 6,000 taxi and hire car drivers who claim they lose income and see their license values plummet due to Uber's business practices. The legal action focuses on the period between 2014 and 2017, when Uber operates its ride-hailing service without proper licenses or authorizations in four major states.
The plaintiffs argue that Uber intentionally breaks local transport laws to establish its market dominance. Instead of suing the government for failing to enforce regulations, the law firm targets Uber directly and highlights the company's use of 'Greyball' software to evade authorities. This controversial tool helps Uber illegally operate while actively disadvantaging law-abiding taxi drivers who pay for expensive commercial licenses.
Backed by a major global litigation funder, this 'no win, no fee' case seeks significant financial compensation for the affected drivers and license owners. Although Australian states eventually change their laws to legalize ride-hailing, the lawsuit specifically addresses the financial devastation caused by Uber's earlier unlawful conduct. The legal team describes this as a landmark case that holds a powerful tech company accountable for placing itself above the law.