UBER UPDATE
UBER TO PAY $272 MILLION COMPENSATION IN SETTLEMENT WITH AUSTRALIAN CABBIES
Uber will pay nearly $272 million to settle a class action lawsuit brought by Australian taxi and hire-car drivers. The settlement, which is Australia’s fifth-largest ever, resolves a five-year legal battle over Uber’s aggressive entry into the Australian market more than a decade ago. The lawsuit was initiated by Melbourne taxi driver Nicos Andrianakis and later grew to represent over 8,000 drivers. It centred on Uber’s launch of its UberX service in Australia before it was legally regulated, which the drivers claimed caused them
significant financial harm, including loss of income and a drastic drop in the value of their expensive taxi licenses. In a statement, Maurice Blackburn Lawyers, the firm that brought the suit, said Uber “fought tooth and nail” for years but ultimately agreed to settle on the “courtroom steps,” holding the global giant accountable for its launch strategy. Andrianakis had previously described Uber’s arrival as being like “pirates” who broke every law. Uber released its own statement, acknowledging that when it
began operating, “ridesharing regulations did not exist anywhere in the world.” The company noted that it is now regulated in every Australian state and territory and that the settlement will help to “put these legacy issues firmly in our past.” The class action settlement is a significant victory for the drivers, providing financial compensation where other cases against governments had failed. This settlement follows a 2022 ruling where Uber was fined $21 million for misleading consumers about cancellation fees.
HONG KONG PROPOSES NEW LICENSING RULES FOR RIDE-HAILING SERVICES, INCLUDING UBER
Hong Kong is moving to regulate online ride-hailing services like Uber, proposing a new licensing system for platforms, drivers, and vehicles. The government has sent a document to the legislature outlining its plans, which aim to create a legal framework for the popular services while also ensuring the co-existence
of
traditional taxis. Under the new regulations, ride- hailing platforms will need a business licence and a physical office in Hong Kong. They must also meet conditions related to operational experience, financial capability, and capital investment. To ensure safety and account- ability,
required to verify that their drivers and cars have the proper insurance.
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For drivers, the government proposes stricter requirements, including: l Holding a private car driving licence for at least one year.
l Having no serious traffic convictions within five years.
the platforms will be
l Passing a test and completing training. The proposals also include a quota on the number of vehicles allowed to operate, with a seven-year age limit for cars, which must also pass an annual inspection. The move to regulate comes after years of legal ambiguity. Providing paid transportation in a private vehicle without a permit is currently illegal, and police have arrested and fined Uber drivers in the past. Despite this, services like Uber, which launched in 2014, have remained popular due to resident
frustrations with traditional taxi services. Hong Kong leader John Lee emphasised that the new framework would need to ensure the “co-existence of online ride- hailing services and traditional taxi services.” The government also suggested charging platforms fees to support the taxi industry in improving its service. Uber Hong Kong, while welcoming the development of a regulatory framework, expressed concerns about the proposed caps on vehicles. In a statement, the company said: “Artificial limits risk increasing wait times, raising prices for riders and restricting earning opportunities for drivers." The company stated it is eager to continue discussions with the government and stakeholders.
AUGUST 2025 PHTM
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