Why Uber is Sued by Australian Cab Drivers?

Uber is found to be a culprit due to its unfair lawsuit for Australian drivers.

Uber is Sued by Australian Cab Drivers

To add to Uber’s woes ahead of the company’s much-anticipated IPO, Australian Uber drivers launched a class-action lawsuit over lost wages against the ridesharing platform. The lawsuit was filed on behalf of 6,000 Australian Uber drivers and it alleges the popular tech company is using unlawful practices in Australia.

Uber has denied any wrongdoing in Australia, but the lawyer who filed the lawsuit said the suit could be worth hundreds of millions of dollars. The Australian suit alleges Uber operated illegally in four Australian states without having proper business licenses.

Uber has received heat in the past for troublesome practices such as ‘Greyball’, a practice uncovered by The New York Times which allowed Uber to illegally deny services to local authorities hoping to monitor the massive company.

Protests and Financials

News of the lawsuit has also been compounded by Uber drivers protesting worldwide against corporate practices that many drivers argue is impacting their bottom line.

One of the Australian transport union workers spokespeople said,

Uber drivers are upset with the direction of the platform and are protesting for higher wages and better working conditions after Uber raised the percentage it takes from drivers.

Uber’s IPO is expected to result in an $80 billion evaluation, but the highly-valued company is constantly running at a loss and reported a loss of $1.8 billion in 2018.

The gloomy financial situation of the company is likely the catalyst behind the crunch on drivers. Drivers are one of Uber’s biggest expenses, and the company is heavily pushing for driverless cars while slashing the cut human drivers take home after a ride.

This reality is fueling the anger behind the protests and many of the lawsuits. Drivers feel they are being squeezed out in favor of impressing the company’s new shareholders.

Florian Felsing from aboutmen.com.au said,

Uber settled a class-action lawsuit in America several months ago for $20 million, but the company has not indicated that it will settle yet in the Australian case. Australian Uber drivers may be suiting up for a long, drawn-out battle, but, with momentum on their side considering Uber protests sweeping the world.

Disruptive apps have been all the rage, but perhaps, Uber has gone to overstepped its bounds and disrupted too much.

For understanding the fundamental of Uber app and the cost involved to build the app, click here.

Manish <span>Content Strategist</span>
Written By
Manish Content Strategist

With a mixture of literature, cinema, and photography, Manish is mostly traveling. When he is not, he is probably writing another tech news for you!

Think Your Professional Journey
Deserves A Spot In Our 40 Under 40 Report?

Featured Blogs

Featured Interviews


Interview With Coyote Jackson, Director of Product Management, PubNub

MobileAppDaily had a word with Coyote Jackson, Director of Product Management, PubNub. We spoke to him about his journey in the global Data Stream Network and real-time infrastructure-as-a-service company. Learn more about him.

MAD Team 4 min read  

Interview With Laetitia Gazel Anthoine, Founder and CEO, Connecthings

MobileAppDaily had a word with Laetitia Gazel Anthoine, Founder and CEO, Connecthings. We spoke to her about her idea behind Connecthings and thoughts about the company’s services.

MAD Team 4 min read  

Interview With Gregg Temperley, Founder Of ParcelBroker App

MobileAppDaily had a word with Gregg Temperley, Founder. We spoke to him about his idea behind such an excellent app and his whole journey during the development process.

MAD Team 4 min read  

Interview With George Deglin, CEO Of OneSignal

MobileAppDaily had a word with George Deglin, the CEO and co-founder of OneSignal, a leading customer messaging and engagement solution, we learn multiple facets related to customer engagement, personalization, and the future of mobile marketing.

MAD Team 4 min read  
MAD Originals
MAD Originals

Cut to the chase content that’s credible, insightful & actionable.

Get the latest mashup of the App Industry Exclusively Inboxed

  • BOTH
Join our expansive network, build connections and expand your brand presence.