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Uber admits stiffing NYC drivers by millions

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Posted at 4:07 AM, May 24, 2017
and last updated 2017-05-24 04:07:09-04

Uber has admitted to underpaying its New York City drivers tens of millions of dollars for the past 2 1/2 years.

The ride-hailing company on Tuesday said each affected driver would get a refund of about $900, which includes interest. Uber did not give a figure on how many drivers it has in the city, but said it was in the tens of thousands.

The company says it had mistakenly continued to calculate its commission based on the gross fare, before any taxes and fees were deducted. The company will now calculate its commission based on the net fare, which is in line with its national policy.

Uber executive Rachel Holt says the company is "committed to paying every driver every penny they are owed - plus interest."