The world’s most valuable startup has apparently been underpaying its drivers. Uber has announced that a mistake in calculating commissions meant that the company ended up paying its drivers in New York City, less than what they actually made. The company realized this on Friday, when it was going through the process of announcing changes to the way it pays its drivers.
In NYC, the cab aggregator takes a 25 percent cut from the total amount charged to the passenger. The company’s 25 percent is calculated after all taxes and fees are taken into account. However, something cause the company to err and Uber ended up calculating and charging its commission before making the fees and tax adjustments. As can be expected, this lead to a significant drop in the amount the drivers actually got to take home with them.
The company says that it has only discovered the mistake in NYC, and that it is preparing to refund drivers for what is owed to them even as we speak.
Speaking on the topic, Uber Regional General Manager of U.S. and Canada Rachel Holt said:
We are committed to paying every driver every penny they are owed — plus interest — as quickly as possible. e 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 accident is probably going to cost Uber tens of millions of dollars, if not more. However, it is good that Uber has owned up to the mistake it made and is taking steps to rectify it and is doing that is fair.
Drivers in the NYC who have completed a trip in the last 90 days will receive an e-mail with the amount that they are liable to receive from Uber. Folks who haven’t taken a drive in the last 90 days, will first need to confirm their bank account. Following this, Uber promises that the money owed to the drivers will be deposited within 7 days.
