Uber Admits Stiffing NYC Drivers

Company says drivers were underpaid for years
By Newser Editors and Wire Services
Posted May 24, 2017 3:18 AM CDT
Uber Admits Stiffing NYC Drivers
An Uber car drives through LaGuardia Airport in New York.   (AP Photo/Seth Wenig, File)

Uber has admitted it underpaid its New York City drivers tens of millions of dollars over the last 2.5 years. "We are committed to paying every driver every penny they are owed—plus interest—as quickly as possible," Uber exec Rachel Holt said Tuesday, per the AP. "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." The company said each affected driver would get a refund of about $900, which includes interest. Uber did not give an exact figure on how many drivers it has in the city, but said it was in the tens of thousands.

The company said it had mistakenly continued to calculate its commission based on the gross fare, before any taxes and fees were deducted. The company will now calculate its commission based on the net fare, which is in line with its updated national driver policy enacted in November 2014. The union that represents Uber drivers welcomed the announcement, but said the company owes its drivers more than it is claiming. "This payout is an attempt by Uber to pull a fast one to avoid court oversight and shortchange drivers in the process," says Bhairavi Desai, executive director of the New York Taxi Workers Alliance. (The Justice Department is investigating Uber's "Greyball" program.)

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