Uber Technologies (NYSE:UBER) has agreed to pay $178 million (A$271.8 million) to settle a class action lawsuit in Australia. The suit was filed by more than 8,000 taxi and hire car owners and drivers in 2019, who alleged that Uber’s entry into the Australian market caused a decline in their income.
The plaintiffs claim that Uber’s UberX services, which provide private car transportation, violated regulations by using vehicles and drivers without the necessary license. In response, the company argued that the ride-sharing industry lacked regulations when it entered the market.
Uber also highlighted its support for state-level taxi compensation since 2018 and asserted that the growth of ride-sharing services has benefited Australia’s transport industry.
Legal Challenges
Uber has faced several legal challenges globally, including disputes over safety concerns, worker classification, and unfair competition.
It is worth noting that in December, the company won a lawsuit filed by 2,500 French taxi drivers after a Parisian court ruled in Uber’s favor. The court rejected allegations that Uber’s operations constituted unfair competition within the French market.
Importantly, Uber’s efforts to move past these regulatory hurdles will help it focus on improving its performance. The company’s strategic diversification into delivery and advertising services is expected to support its long-term growth.
Is Uber a Buy, Sell, or Hold?
Uber’s strong cash position and efforts to grow keep analysts optimistic about the stock. On TipRanks, Uber has a Strong Buy consensus rating based on 35 Buy and two Hold ratings. Also, the analysts’ average price target on UBER stock of $86.70 implies a 13.97% upside potential. Shares of the company have gained about 138% in the past year.
