Taxi Driver Online

Hundreds of taxi drivers sue the government after competition from Uber causes their licenses fall in value from $500K to just $60,000

Nearly 1,000 taxi licence holders have banded together to sue the Queensland State Government as rideshare companies steal their business. The group have filed a claim to the Supreme Court, arguing the state engaged in 'unconscionable conduct' because ridesharing companies like Uber - who are their direct competitors - do not pay for taxi licences but share the same rights.

The 956 taxi licence holders are seeking damages under Australian Consumer Law, equitable compensation and damages for breach of contract.

Taxi-industry veteran of 20 years Gary Pascoe owns leased licences which have plummeted in value. 'I paid approximately $520,000 for a licence about five years ago and I believe one has been sold recently for about $60,000,' Mr Pascoe told The Courier Mail.

Lawyer John Maitland said outside court the 1,350 licences combined were worth $513 million and the 956 owners could potentially seek hundreds of millions of dollars from the State. 'A lot of these people have borrowed against property to buy these licences... but the banks don't forgive anybody. Now some people in their mid 80s are being thrown out of houses,' he said.

The Queensland State Government has allowed rideshare operators like Uber to operate in Queensland since 2014 and legally since 2017.

Rideshare drivers allegedly shared many of the rights held by licenced taxi drivers without the same rules, regulations and expensive licence fee. Taxi licence holders and taxi drivers assumed they could exclusively transport passengers since they paid the fee, the claim said.

The Government offered $20,000 per licence in compensation to taxi licence holders for a maximum of two licences per holder. The State Government claimed it had only received the amended statement of claim yesterday and is yet to file a response.

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