Uber has confessed to an accounting error, which caused tens of thousands of NYC drivers to be underpaid for 2.5 years. It promises to refund all its NYC drivers around $900 each- costing the company tens of millions of dollars.
Uber, among the largest car-hailing companies in the world, has confessed to an accounting error that resulted in its NYC drivers being underpaid for a period of over two years.
The company reportedly discovered this error when creating New York City drivers’ receipt template. The mistake was that Uber was deducting its 25% commission from drivers’ gross fares rather than after taxes & fees.
Each driver is now owed an average of 900$, which Uber plans to fully return to the drivers- a decision which will cost the company tens of millions of dollars.
The company’s regional general manager, Rachel Holt, said: “We are committed to paying every driver every penny they are owed — plus interest — as quickly as possible. We are working hard to regain driver trust, and that means being transparent, sticking to our word, and making the Uber experience better from end to end.”
Comments on the Error
Uber hasn’t exactly had a smooth relationship with its drivers over the past couple of years. Uber drivers have often complained that their pay is too low through stage protests and lawsuits.
Jim Conigliaro Jr, the founder of Independent Drivers Guild said: “Uber’s theft of drivers’ hard-earned wages is the latest in a long history of underhanded tactics in this industry. This is exactly why we have been calling for industry-wide pay protections to stop the exploitation of New York’s drivers once and for all.”
He also mentioned that Lyft and Gett, also ride-hailing companies, also deduct commission from gross fares.
A Lyft spokesman confirmed that this is true, but that that’s what is written the driver’s agreement.
“In New York, we deduct commissions and administrative fees from gross fares, as per our driver agreement. We also pay sales tax on gross fares as required by law.”