Uber admits underpaying New York City drivers by millions of dollars

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.