Uber Agreed to Pay New York Drivers after admitting Calculation Error

Uber Technologies Inc. said Tuesday it underpaid its New York City drivers for the past two-and-a-half years. Reuters reported that the company had an error that improperly calculated the company’s share of passenger fares. Uber will pay out an average of $900 per driver in return, which will cost tens of millions of dollars.

The Taxi Workers Alliance claims that the payments Uber is currently offering are not enough to fix the damage. Bhairavi Desai, the Taxi Workers Alliance’s executive director, explained in a statement, "While we welcome progress in Uber acknowledging its unlawful deductions, make no mistake: the full amount that they owe to drivers is much more than what it is now claiming… Uber hasn’t just wrongly calculated its commission, it has been unlawfully taking the cost of sales tax and an injured worker surcharge right out of driver pay as opposed to charging it on top of the fare as the law requires."

Uber on their side, promised to be transparent with their drivers. According to a report by Bloomberg, Rachel Holt, Uber’s head of U.S. operations, said in a statement, “We are committed to paying every driver every penny they are owed – plus interest – as quickly as possible… 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.”

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