【2018 Archives】

Another day018 Archives another Uber scandal: Uber underpaid its New York City drivers for two-and-a-half years and probably owes them "tens of millions," according to a report in the Wall Street Journal.

The ride-hailing giant took a higher cut of drivers' earnings than it was supposed to after a November 2014 nationwide driver agreement. The company had agreed to take a commission of about 25 percent from drivers, calculated without including taxes and fees as part of drivers' earnings. Uber instead determined its own commission from full fares, including sales tax and a local injury compensation fund fee, taking more money from drivers than it was supposed to.

Uber will refund that money plus interest to drivers and former drivers, averaging about $900 per driver, the WSJ reported. New York City is one of Uber's biggest markets, and that $900 each could total as much as $45 million.

“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,” Rachel Holt, regional general manager of Uber in the U.S. and Canada, said in a statement. “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.”

Uber, of course, has been plagued by scandal since early 2016 — including ties to President Donald Trump, sexism and sexual harassment, and the list goes on. This multi-million-dollar accounting mistake doesn't seem likely to go away, especially considering Uber's opponents aren't satisfied with the company's method of recourse.

“Uber’s theft of drivers’ hard-earned wages is the latest in a long history of underhanded tactics in this industry," Jim Conigliaro Jr., founder of the ride-hailing drivers' group the Independent Drivers Guild, said in a statement.

"While we welcome progress in Uber acknowledging its unlawful deductions, make no mistake: the full amount that Uber owes to drivers is much more than what it is now claiming," New York Taxi Workers Alliance Executive Director Bhairavi Desai said in a statement.

Uber has had to pay back money to its contract drivers before, including a $20 million refund in response to allegations from the Federal Trade Commission.

As always: It's a great time to be at Uber!