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Rideshare conglomerate Uber is active in 72 countries, with billions of trips made each year. People rely on this service not just for transportation, but also to receive food delivery via UberEats. Over the years, Uber has expanded by adding freight services and allowing users to book rail and train tickets via its app.

Driving the popularity of this rideshare giant is convenience at affordable rates. Taxis, known for being on the pricier side, have taken hits as more people rely upon budget-friendly alternatives to get from point a to point b.

Unfortunately, even the best and most advantageous businesses encounter problems from time to time. In the case of Uber, the company is set to pay out nearly $200 million in settling a class action lawsuit.

What to know about the lawsuit brought against Uber

In Australia, Uber got hit with legal action from the company's taxi drivers and operators. They contend that the rideshare giant caused them to lose income, upon arriving on the scene.

These taxi affiliates also allege this lost income stems from Uber breaching certain licensing regulations. Uber, on the other hand, maintains it never purposefully broke any laws; nonetheless, the company still agreed to fork over $178 million to settle the class action lawsuit.

For Australia's taxi drivers and operators, this alone is vindication.

They insist Uber knew their drivers and vehicles needed to obtain licensing, yet failed to abide by this requirement. These plaintiffs furthermore accuse the rideshare conglomerate of taking shortcuts that ultimately gave them a "foothold" and "commercial advantage" at the expense of taxi drivers.

A tough situation to begin with

In most places around the world, taxi operators and companies generally frown upon Uber. The rideshare business naturally targets their customers, offering the same services at significantly reduced rates.

Unlike many taxis (which generally operate by the meter), Uber lets riders know - ahead of time - the fixed rate they can expect to pay for each trip. Many people consequently prefer this over evolving trip charges that vary according to the meter.

Amid generating tens of billions in revenue each year, Uber will almost certainly keep thriving even after its $178 million payment to Australia's taxi drivers and operators.