An Australian taxi industry disruptor, Taxi Apps, accused Uber of illegally operating its ridesharing service in Australia a decade ago to gain an unfair advantage over competitors. The startup alleged that Uber knowingly launched UberX illegally in Australia in 2014 and engaged in serious misconduct, including corporate espionage and hacking of competitors’ systems. The trial opened in the Victoria state Supreme Court, lasting for 10 weeks, following Uber’s agreement to settle a class-action lawsuit brought by 8,000 Australian taxi and rental car drivers for AUD 272 million two weeks ago.
The lawsuit claims that Uber started operations in Australia in 2012 with Uber Black, then Uber Taxi, and eventually UberX without professional drivers, paving the way for a head start of at least 20 months over competitors in the emerging transport app market. Taxi Apps’ lawyer, Michael Hodge, argued that Uber intentionally broke the law to gain a competitive advantage, showing no remorse for its actions. He highlighted that Uber’s non-compliance forced GoCatch, a competing app, to exit the transport industry in 2021, whereas it could have continued to grow and launch a ridesharing product if Uber had followed Australian laws.
Uber has refuted the allegations, stating that it would vigorously defend itself in court and rejecting any liability for the failure of other peer-to-peer businesses to adapt to the competitive landscape. GoCatch co-founder Andrew Campbell expressed satisfaction that Uber was being held accountable in court, claiming that Uber’s conduct was aimed at destroying them as a competitive threat by any means necessary. Evidence presented in court revealed Uber’s efforts to recruit GoCatch drivers, spy on their activities, and perceive GoCatch as a significant threat, indicating a deliberate strategy to undermine their competition.
The trial continued with Uber yet to present its case to Justice Lisa Nichols without a jury. Despite the ongoing legal battle, GoCatch remains determined to hold Uber accountable for its actions and seek justice in the court of law. The case sheds light on the intense competition and aggressive tactics employed in the ridesharing industry, highlighting the challenges faced by startups like GoCatch against established players like Uber. As the trial unfolds, the outcome will have significant implications for the future of competition and fairness in the Australian rideshare market, shaping the regulatory landscape for the transport industry in the country.
