Article 2QGBZ Uber admits underpaying New York City drivers by millions of dollars

Uber admits underpaying New York City drivers by millions of dollars

by
Julia Carrie Wong in San Francisco
from Technology | The Guardian on (#2QGBZ)

Tens of thousands of drivers eligible for a refund after company admits it took too much commission from drivers' fares for two-and-a-half years

Uber will pay New York City drivers tens of millions of dollars after admitting to underpaying them for two-and-a-half years by taking a larger cut of drivers' fares than it was entitled.

Under the terms of service the ride-hailing company put in place in November 2014, Uber was supposed to take its percentage of the commission - ranging between 20% and 25% - after deducting sales tax and a local fee to fund benefits for injured drivers. Instead, the company calculated its commission on the gross fare, resulting in more money for Uber and less for drivers.

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