Uber has agreed to a A$271.8 million settlement with Australian taxi operators after a five-year legal battle.

The settlement is the fifth-largest in Australian legal history, involving over 8000 taxi and hire car owners and drivers.

The plaintiffs claimed loss of income due to Uber's entry into the Australian market.

Uber has previously contributed to state-level taxi compensation schemes since 2018.

Maurice Blackburn Lawyers highlighted the significance of the settlement in resolving the dispute.

Uber, valued at around $240 billion, recently integrated taxis into its Melbourne app service.

The settlement aims to provide substantial compensation to those impacted by Uber's market entry.