In a court case in Melbourne, Australia, a local startup has accused Uber of illegally launching its ridesharing service, UberX, in the country a decade ago to gain an unfair advantage over competitors. The trial, which began on Tuesday, is expected to last for 10 weeks.
The Australian startup, Taxi Apps, claims that Uber knowingly operated UberX illegally in Australia in 2014, violating laws in some Australian states where ridesharing was not yet permitted. The lawsuit also alleges serious misconduct by Uber, including corporate espionage and hacking of competitors' systems.
This legal battle comes on the heels of Uber agreeing to a $178 million settlement in a class-action lawsuit brought by 8,000 Australian taxi and rental car drivers. These drivers sought compensation for losses incurred since Uber's entry into the Australian market in 2012.
Taxi Apps' lawyer argued that Uber gained a significant head start over its competitors by launching UberX when ridesharing was still illegal in parts of Australia. The startup, which developed the taxi-hailing app GoCatch, claims that if Uber had complied with Australian law, GoCatch would have continued to grow and eventually launched its own ridesharing product.
Despite the allegations, Uber has stated that it will vigorously defend itself in court and rejects any suggestion of liability for the failure of other peer-to-peer ridesharing businesses to adapt to the competitive landscape.
GoCatch co-founder expressed satisfaction that Uber is being held accountable in court, accusing the rideshare giant of using any means necessary to eliminate competition. The trial will continue on Wednesday without a jury present.
