Uber has agreed to pay almost $272 million to compensate thousands of taxi and hire car drivers. 

Uber's aggressive foray into Australia over a decade ago has caught up with it. 

Economist Jim Stanford from the Australia Institute says Uber's initial strategy was to blatantly ignore existing laws for taxi companies, so it is unsurprising that a reckoning would come.

The class action, representing over 8,000 taxi and hire car owners, shows the profound impact of Uber's unregulated market entry on traditional operators. 

Yet, Uber maintains that the regulatory landscape at its inception did not account for ridesharing, implying a pioneering yet contentious role in shaping modern transport laws.

Governments and regulatory bodies worldwide are watching closely, as the Uber precedent could influence future legislation and industry standards.

Analysts say that while this settlement will not derail Uber's operations, it does serve as a stern warning to tech companies about the consequences of flouting local regulations. 

The settlement might also prompt a recalibration of fares.