Uber concedes that accounting error led to underpay for drivers since 2014

Uber concedes that accounting error led to underpay for drivers since 2014

Uber has conceded that a ‘discrepancy’ drivers pay statements and its own terms of service has led to tens of thousands of drivers across New York being underpaid since late 2014.

Blaming the incorrect salaries on an accounting error the ride hailing service has begun the process of reimbursing affected drivers with the money owed, with some picking up lump sum payments of over $7,000.

Averaging out at a bill of $900 per driver Uber estimates that it will cost tens of millions of dollar to put the situation right with Uber only realizing its error when it began introducing a new pricing structure which bills riders based on an estimate of what an individual will be willing to pay.

It is believed the anomaly occurred because Uber charged its commission, generally around a quarter of each fare, before deducting sales tax and other fees when in fact it should have been deducting these costs before claiming its share.

In a statement Rachel Holt, Uber’s regional manager of U.S. and Canada, said: “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.”

Active drivers within the past 90 days will receive an automatic deposit of monies owed but anyone who has been inactive over that period must fill out an online form to claim what is due.

Uber has been hit by a succession of scandals in recent months including an on-going inquiry into sexual harassment claims.

Get The Drum Newsletter

Build your marketing knowledge by choosing from daily news bulletins or a weekly special.