News
News Categories

Uber admits to underpaying thousands of drivers in NYC since 2014

By Kenny Yeo - on 24 May 2017, 1:38pm

Uber admits to underpaying thousands of drivers in NYC since 2014

(Image source: Uber)

Uber has just admitted that it has underpaid thousands of drivers in New York City for as long as two and a half years.

According to the company, the error was a result of an accounting error. Specifically, Uber miscalculated its own cut of the commission. Instead of taking 25% of the fare after local taxes and fees have been deducted, the company took 25% off the fare before the deductions were applied.

Rachel Holt, Uber’s regional general manager in the US and Canada, said: "We made a mistake and we are committed to making it right by paying every driver every penny they are owed, plus interest, as quickly as possible."

Uber is expected to pay affected drivers an average of around US$900. This incident is expected to cost Uber about US$45 million in total. Drivers are eligible for a refund if they have completed a trip since signing the 2014 agreement, regardless of whether they’re still actively driving for Uber.

Source: Wall Street Journal via Recode

Join HWZ's Telegram channel here and catch all the latest tech news!
Our articles may contain affiliate links. If you buy through these links, we may earn a small commission.