Uber owes millions to its drivers

It has been finally revealed and admitted by Uber that it has collected tens of millions more from New York City drivers. They have collected more amounts than they should have collected over a 3-year span back since November 2014. At present, the company has made a confirmation that it will be making a reimbursement to every driver.

They stated that they have made a mistake in the way, which they have been calculating the commission, which they need to get from the drivers. The ride-hailing behemoth stated that it is taking its cut inclusive of the state taxes instead of a pre-tax fare. If we consider the fact of a rider paying $20 & $2 would represent the taxes.

The commission, which is being deducted, is of the $20 instead of $18 and on the whole, the price gets higher and it is, in fact, huge as well. Even if we consider the mere change, the cumulative difference is huge. Uber’s regional manager for the US and Canada Rachel Holt said that the company will return every single penny along with the interest which they owe to their drivers.

Uber’s contract clearly states only 25% commission will be deducted exclusively from the state taxes from their fares. It is also said that in NYC Uber should add up 9% of the sales tax along with 2.5% of the “Black-Car Fund” surcharge to cover the worker’s compensation. Uber has acknowledged the error with the system and will collect $900 per reimbursement.

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