May 23 Uber Technologies Inc said on
Tuesday it underpaid its New York City drivers for the past
two-and-a-half years, an error that could cost the ride-hailing
company tens of millions of dollars.
Uber generally takes a commission from its drivers after
deducting taxes and some fees, but it instead took a higher
percentage from its New York City drivers using the full fare
before accounting for sales taxes and fees, according to the
Wall Street Journal, which first reported the news. on.wsj.com/2rPJOUk
Uber usually takes a 25 percent commission from U.S. drivers
under a November 2014 nationwide driver agreement, the report
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
All New York City drivers under the 2014 agreement would be
eligible for a refund, regardless of whether they are still
active or not, as long as they completed an Uber ride, the
Journal report said.
In January, Uber agreed to pay $20 million to settle claims
by the U.S. government that it exaggerated prospective earnings
in seeking to recruit drivers and that it downplayed the costs
of buying or leasing a car.
Uber has been hit with a number of setbacks lately,
including accusations of sexual harassment from a former female
employee and a video showing Chief Executive Travis Kalanick
harshly berating an Uber driver.
(Reporting by Aishwarya Venugopal and Sangameswaran S in
Bengaluru; Editing by Sai Sachin Ravikumar)