(MENAFN) Uber, the global rideshare company, has agreed to pay 272 million Australian dollars (USD178 million) to resolve a prolonged dispute with Australian taxi and hire car drivers who were negatively impacted by the company's entry into the Australian market.

The settlement comes as a class action against Uber, representing 8,000 taxi and hire car drivers, was set to begin trial in the Supreme Court of Victoria. However, Maurice Blackburn Lawyers, the legal representatives of the drivers, announced that the case would be dropped following Uber's agreement to the financial settlement.

According to Michael Donelly, principal lawyer at Maurice Blackburn, the drivers and car owners suffered financial losses as a result of Uber's aggressive market entry in 2012. He also stated that Uber consistently attempted to evade compensating them for their losses.

“On the courtroom steps and after years of refusing to do the right thing by those we say they harmed, Uber has blinked, and thousands of everyday Australians joined together to stare down a global giant,” he stated.

In a statement, Uber characterized the grievances raised by the taxi industry as "legacy issues" and highlighted that rideshare regulations were non-existent globally when the company commenced operations over a decade ago.

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