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Last Updated Monday December 11 2017 04:49 PM IST

Uber underpaid NY City drivers, company says ready to repay

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Uber An Uber cab drops a passenger in New York City. Photo: Getty Images

Washington: Uber Technologies said Tuesday it underpaid its New York City drivers for the past two-and-a-half years, an error that could cost the ride-hailing company tens of millions of dollars.

Uber generally takes a commission from its drivers after deducting taxes and some fees, but it instead took a higher percentage from its New York City drivers using the full fare before accounting for sales taxes and fees, according to the Wall Street Journal, which first reported the news.

Uber usually takes a 25 percent commission from US drivers under a November 2014 nationwide driver agreement, the report said.

The company could pay drivers back at least $45 million, averaging at about $900 per driver, the Journal reported.

"We are committed to paying every driver every penny they are owed - plus interest - as quickly as possible," Rachel Holt, Uber's regional general manager for US and Canada, said via email.

All New York City drivers under the 2014 agreement would be eligible for a refund, regardless of whether they are still active or not, as long as they completed an Uber ride, the Journal report said.

In January, Uber agreed to pay $20 million to settle claims by the US government that it exaggerated prospective earnings in seeking to recruit drivers and that it downplayed the costs of buying or leasing a car.

Uber has been hit with a number of setbacks lately, including accusations of sexual harassment from a former female employee and a video showing Chief Executive Travis Kalanick harshly berating an Uber driver.

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The opinions expressed here do not reflect those of Malayala Manorama. Legal action under the IT Act will be taken against those making derogatory and obscene statements.

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