Uber pays Aussie taxi drivers $272m in class action settlement

US technology giant Uber Technologies has settled in a class action lawsuit brought by a law firm on behalf of Australian taxi drivers, agreeing to pay $272 million. It is the fifth-largest class action settlement in Australian legal history.

Maurice Blackburn Lawyers and former taxi driver Nick Andrianakis, who was the main plaintiff in the action, attended the Supreme Court of Victoria on Monday morning to close out a case that began in 2019.

The class action grew to incorporate more than 8000 taxi and chartered drivers. They said Uber had harmed them financially by setting up and running its UberX services in Australia illegally.

The case was due to run until May 17. But a deal has been struck, and was detailed on Monday morning.

In a statement, Maurice Blackburn Lawyers Principal Michael Donelly said the historic settlement followed a gruelling five-year legal battle.

“Uber fought tooth and nail at every point along the way, every day, for the five years this has been on foot, trying at every turn to deny our group members any form of remedy or compensation for their losses,” he said.

“But on the courtroom steps and after years of refusing to do the right thing by those we say they harmed, Uber has blinked, and thousands of everyday Australians joined together to stare down a global giant.”​

Uber ‘like pirates’

The case against Uber was for lost income for drivers and loss in the value of licences bought by the owners of taxis, hire cars, limousines and charter vehicles, when Uber launched with cheaper and more convenient services, despite being unlicensed.

Uber first launched in Australia in Sydney in 2012, operating outside the law, and often facing furious protests from the taxi industry. The ACT was the first Australian jurisdiction to allow ride-sharing services such as UberX to operate legally in 2015. NSW followed soon after, before the rest of the country.

When Uber was legalised in NSW in December 2015, the state government added a $1 levy for every trip for up to five years to compensate taxi licence owners.

Mum and dad investors in taxi licences were told they would receive an up-front compensation of $20,000 for up to two licences. Taxi licence owners who had bought the licence in 2015 would receive the maximum compensation of $175,000 from the government.

There was no compensation for licence owners who bought the licence before 2006.

Quoted by ABC news in 2019, Mr Andrianakis said he was forced out of business by Uber’s popularity.

“My family has always been into taxis, my father drove taxis 
 my son drove taxis while he was at uni,” he said. “But when Uber came to our shores illegally, like pirates, they broke every law, every regulation.”

Mr Donelly said the settlement was in the top five class actions in Australian legal history, and “put beyond doubt” that Uber had been held to account for its actions.

“We are extremely proud that thousands of people put their faith in us and Nick Andrianakis and allowed us to do what we do best – holding to account major organisations that we say inflicted mass wrongs on people,” he said.

“A $271.8 million sum will finally put real money back into the accounts of people who have been devastated.”

In a statement, an Uber spokesman sought to highlight that the ridesharing service was now regulated in every state and territory across Australia, and that governments recognised it as an important part of the nation’s transport mix.

“Since 2018, Uber has made significant contributions into various state-level taxi compensation schemes, and with today’s proposed settlement, we put these legacy issues firmly in our past,” the spokesman said.

“We will continue focusing on helping the millions of Australians who use Uber get from A to B in a safe, affordable and reliable manner.”

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Queensland taxi, rideshare drivers issued hundreds of fines for incorrect parking, signage

17 January 2023

More than 600 fines have been given to Queensland taxi and rideshare drivers found to be operating in violation of industry guidelines.

Transport Minister Mark Bailey told ABC Radio Brisbane Mornings host Rebecca Levingston the enforcement blitz started in December and focused heavily around rides ordered and taken in Brisbane and the Gold Coast on and about December 31.

Authorities intercepted 2,056 taxis, limousines and booked hire vehicles.

Fines were issued for 31 different offences from December 2 to January 15, of varying amounts starting at $575, and included:

  • Failure to display a compliant booked hire sign — 179 fines
  • Unauthorised vehicle stopping in a bus zone — 130 fines
  • Stop in taxi zone while providing a booked hire service — 57 fines
  • Driver failure to carry their driver authorisation – 57 fines
  • Stop contrary to continuous yellow edge line – 67 fines

Other serious offences for which penalties were issued included driving an unregistered or defective vehicle, driving a vehicle with an unapproved security camera system, failure to ensure a security camera system is fitted and operational, or failing to display a security camera system sign.

“The majority of drivers do the right thing … but there were a number of drivers doing the wrong thing — not taking short fares, overcharging, not running meters,” Mr Bailey said.

“If you’ve had a few drinks and want to go home at 2am … you need to have confidence that cab is going to look after you and stick to the rules.

“We were very concerned over the Christmas period that this was happening.”

Mr Bailey said transport inspectors had worked 24/7 shifts, “sometimes covertly, sometimes uniformed”, and recorded 613 offences since the start of December totalling about $146,000.

Taxi drivers accounted for 80 fines while 524 fines were issued to rideshare drivers. Limousines and privately registered vehicles made up the remainder.

He said the department “particularly targeted New Year’s Eve because we knew that would be an issue”, intercepting 475 vehicles and issuing 104 fines in that time period as a result.

“We’ve had a lot less fines for over quoting and overcharging since the operation started in November, which is pleasing to see,” Mr Bailey said.

“But my message is that drivers breaking the rules, committing traffic offences or failing to carry their driver authorisation will be caught.

“There is no place for these dodgy practices and drivers need to obey the rules.

“We will continue our compliance operations, but we also ask the public to report any taxi or rideshare driver doing the wrong thing to help stamp out illegal behaviours.”

The Gold Coast area was a focus on January 14, with increased visitors for the Magic Millions race day.

Mr Bailey called on companies in the taxi and rideshare industry to improve self-regulation.

“It shouldn’t take fines for companies and drivers to step up and follow the rules that are in place,” he said.

“If this non-compliance continues, we will not hesitate to hand out fines of up to $5,750.”

Queensland’s Taxi Industry Council previously said it was aware of rogue cab drivers refusing to switch the meter on and instead insisting on cash-only and inflated fares during peak times at hospitality venues, major events and at the airport.

Australian Taxi Industry Association boss Blair Davies said the organisation had been encouraging the government to crack down on bad behaviour.

“Professional drivers have worked out the transport department is serious about catching this behaviour, and the number of incidents have significantly dropped off,” he said.

“I don’t know if they’ve been eliminated but they’ve dropped.

“Now, there are many more fines going to rideshare drivers for things like stopping in taxi zones and not having appropriate signage on their cars.

“We’re encouraged by that but we’d like to see a little bit more enforcement of touting.”

Touting describes drivers and customers doing cash deals outside of the safety of rideshare apps or taxi booking services and meters.

“In a nutshell, we’re supportive of the minister’s actions and appreciate his intervention, because at the end of the day, these small number of rogue taxi drivers are giving the industry a bad name,” Mr Davies said.

Repeated offences could result in much larger fines or being given fewer jobs by booking services.

Mr Davies said ultimately the transport department could cancel drivers’ booked hire taxi authorities, which were a form of license to operate such a business.

An Uber spokesperson said drivers who broke its guidelines could be banned.

Mr Bailey responded to reports in early November, of taxi and rideshare drivers demanding inflated cash fares without metres or apps at peak times by promising to stamp out the illegal practices.

https://www.abc.net.au/news/2023-01-17/queensland-taxi-rideshare-drivers-fines-refuse-fares-price-gouge/101862192

TCQ wants your input on taxi licensing reform

The Taxi Council of Queensland (TCQ) is planning to hold another round of town hall meetings across the State over the next few months to update members on developments and hear from them directly about what they would consider reasonable and acceptable in regard to taxi licensing reforms and compensation. The meetings will be similar in format to those held previously. TCQ wants to hear from all members of the industry so that we can use our seat at the negotiation table for maximum advantage. So, if you have a stake in the industry and want to have a say in where it is heading, TCQ is welcoming you to get involved.

REGISTER INTEREST HERE

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