SYDNEY, May 3, 2019 (BSS/AFP) – Global ride-sharing firm Uber on Friday
faced another legal bump on the road to its blockbuster initial public
offering, with taxi drivers launching a class action lawsuit in Australia.
Thousands of cabbies are alleging that Uber gained an unfair advantage and
destroyed their livelihoods by knowingly operating above the law, according
to a filing lodged in the state of Victoria on Friday.
Law firm Maurice Blackburn said their clients want to recover income they
claim is lost as a result of Uber allegedly operating without proper licences
for their drivers and vehicles.
“It is shaping (up) as one of the largest class actions in Australian
history,” said the firm’s head of class actions Andrew Watson.
“Make no mistake, this will be a landmark case regarding the alleged
illegal operations of Uber in Australia.”
It is unclear whether the class action will be successful, or whether any
payout — even in the multiple millions of dollars — would be anything more
than a blip on the company’s multi-billion dollar revenues.
But supporters hope it will serve as a reminder to investors that Uber’s
gig economy model is likely to face more legal and regulatory scrutiny.
That message comes at a sensitive time for the company, as it prepares to
sell 207 million shares, raising up to $10 billion in a US IPO.
The company has already been hit by a series of scandals over executive
misconduct, a toxic work atmosphere and potentially unethical competitive
practices.
“It is a dud investment dressed up as something innovative,” said Tony
Sheldon of the Transport Workers’ Union. “Its business model is based on
exploitation, lies and illegal activity.”
Uber told Australian media that it had not yet been notified of the
action, but had become an established part of the transport mix, used by
millions of people each year in Australia alone.