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Uber Inadvertently Underpaid New York City Drivers for Over Two Years

On Tuesday, Uber Technologies Inc. said it underpaid its New York City drivers for the past two-and-a-half years. The company generally takes a commission from its drivers after deducting taxes and fees, but according to the Wall Street Journal, it instead took a higher percentage from its New York City drivers using the full fare before accounting for sales taxes and fees. Uber usually takes a 25 percent commission from U.S. drivers under a November 2014 nationwide driver agreement.
The company could pay drivers back at least $45 million, averaging at about $900 per driver, the Journal reported. "We are committed to paying every driver every penny they are owed - plus interest - as quickly as possible," Rachel Holt, Uber's regional general manager for U.S. and Canada, said via email. In January, Uber agreed to pay $20 million to settle claims by the U.S. government that it exaggerated prospective earnings while recruiting, and that it downplayed the costs of buying or leasing a car.

Source: Reuters, Vox, WSJ

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