Yesterday Uber Technologies Inc admitted to underpaying its New York City drivers tens of millions of dollars for the last 2 1/2 years. Uber executive Rachel Holt said in a statement that they are committed to paying every driver every penny they are owed — plus interest — as quickly as possible. He claims they are working hard to regain driver trust, and that means being transparent and making the Uber experience better from end to end.
The ride-hailing 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 claiming it’s contending is owed. It's been a tumultuous year for Uber, which has been hit with lawsuits, allegations of sexual harassment, a federal investigation into claims that it has used a fake version of its app to thwart authorities and accusations of trade theft.