₹1,475 Crore Setback To Uber: Ride-Hailing App Settles For Massive Payout To Drivers In Australia

Uber has once again made it to the headlines for the wrong reason. In a major setback to the American ride-hailing service, the company has settled a lawsuit through pecuniary compensation. Uber has agreed to shell out as much as USD 178 million or Rs 1,475 crore to drivers and operating staff in Australia.

The law suit was filed in court down under on behalf of over 8,000 drivers. This came to pass, as the American-giant precipitously tried to expand its footprint in the country. This according to reports incurred major financial burden on the drivers, as they many lost their incomes.

Barring the cumulative amount, the scale and size of the settlement is yet to be brought to the public domain.

The court is yet to approve purported settlement as to be in the interest of drivers.

The Australian taxi-cab market is dominated by Uber, Didi, Indian-cab service Ola and A2B. These major players are said to account for a gargantuan market share of about 70 per cent.

Previously, Uber found itself in a similar situation, when Uber along with another ride-sharing service Lyft agreed to pay New York drivers an amount of USD 328 million, as they were accused of 'systematically cheating' the drivers.