Uber Wrongfully Underpaid Thousands of NYC Drivers
It's been quite a tumultuous year for Uber and the blunders keep coming.
It's been quite a tumultuous year for Uber and the blunders keep coming.
Uber has vowed to reimburse their NYC drivers who they have admitted had been wrongfully underpaid for the past two and a half years.
“We are committed to paying every driver every penny they are owed — plus interest — as quickly as possible,” Uber executive Rachel Holt 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.”
The ride-hailing company said it inadvertently calculated its commission for “tens of thousands” NYC drivers and each driver can expect a refund of about $900.
The union that represents Uber drivers welcomed the announcement but said this is a sign that other ride -hailing companies are in need of regulation and the company owes its drivers more than what they will be getting.
“Uber’s theft of drivers’ hard-earned wages is the latest in a long history of underhanded tactics in this industry,” IDG founder Jim Conigliaro Jr. told HuffPost. “Year after year, companies like Uber, Lyft, Juno and Gett become more valuable and year after year they find new ways to take advantage of hard-working drivers,” he added. “This is exactly why we have been calling for industry-wide pay protections to stop the exploitation of New York’s drivers once and for all.”
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“Uber is using the difference in the commission it wrongly took from drivers, rather than reimburse the drivers the full tax and surcharge amounts they are owned back — a difference of nearly 10 percent,” said Bhairavi Desai, executive director of the New York Taxi Workers Alliance.
Uber is currently looking into whether other cities may have been affected, but as of right now they haven’t found another instance.
The app company has had quite a year as they’ve been hit with a number of lawsuits, allegations of sexual harassment, a federal investigation into claims that it has used a fake version of its app to play off authorities and accusations of trade theft.
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