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-percent of the fare after local taxes and fees have been deducted, the company took 25-percent off the fare before the deductions were applied.
Rachel Holt, Uber’s Regional General Manager in the U.S. 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.