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ABC News
ABC News
National
By Danny Tran

Uber faces possible class action for devastating taxi industry

Victorian taxi and hire car drivers have engaged lawyers to investigate the potential of suing the ride-booking giant Uber for compensation, which they say has devastated their livelihoods.

The Victorian Hire Car Association has asked Maurice Blackburn to canvas the possibility of a class action among an estimated 6,000 drivers who were affected by Uber's expansion into the Victorian market.

"Uber knew it was coming into the Victorian market deliberately to disrupt it," said Ben Slade, the class action principal at Maurice Blackburn.

"While we don't complain about that, what we do complain is that if you are going to break the law and you conspire with others to break the law and it causes people financial losses, then you should compensate them."

At the centre of the possible class action is the allegation that there was an Uber "conspiracy to injure" drivers.

"Our argument will be that Uber was subject to the same regulations that taxi drivers and hire car drivers were," Mr Slade said.

"Uber just ignored the law and proceeded regardless, encouraged drivers of Uber cars to ignore the law and proceed regardless."

Taxi drivers being asked to register

The plan is being backed by the industry lobby group, Victorian Taxi & Hire Car Families.

"We will be asking our members to register their interest," president Sandy Spanos said.

She estimates taxi operators have lost hundreds of millions of dollars in income because of Uber's expansion.

"Uber were well aware that they were operating illegally and they just chose to thumb their noses at the law.

"The wheels of justice turn slowly, but justice will be served," she said.

An Uber spokesman said the company was confident in its position.

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