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Uber Plans Millions In Back Pay After Shorting NYC Drivers (bloomberg.com)
An anonymous reader quotes a report from Bloomberg: Uber Technologies Inc. said it underpaid its New York City drivers by improperly calculating the company's share of passenger fares, and will pay out an average of $900 per driver in restitution, costing tens of millions of dollars. The back pay could run at least $45 million, based on the approximately 50,000 drivers the Independent Drivers Guild says work in New York City. The ride-hailing company has previously misled drivers about how much they could make and miscalculated fares. In this case, Uber was taking its cut of fares based on the pretax sum, instead of after taxes and fees as stated in its terms of service. The issue was also raised in a lawsuit against San Francisco-based Uber filed by the New York Taxi Workers Alliance. In March, Uber acknowledged that it had underestimated drivers' pay in Philadelphia by millions of dollars. "We are committed to paying every driver every penny they are owed -- plus interest -- as quickly as possible," Rachel Holt, Uber's head of U.S. operations, 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 technique commonly known as "robbing Peter to pay Paul".
Seven puppies were harmed during the making of this post.
Watch those ubermenchen spend it all in one place.
Another Uber hate story brought to you by the fine people at Lyft and their corporate partner, GM. Give it up Lyft. No one is using you.
So this is a tax related fee adjustment issue, and isn't the "different path calculated for driver and passenger" fee issue reported on several times recently? How many other fee issues does Uber have?
It seems Uber will always wait to be in court to consider laws as relevant for them.
So what Interest are they getting? The article mentions the average and total, but not how much interest they are making.
Troll is not a replacement for I disagree.
Funny how they never underestimate their cut.
...where you're beholden to one corporation for your work, have no benefits or statutory rights, and have to take legal action to get what you're owed. Meanwhile, politicians sit back and do little to nothing to address a systemic problem that has only political and legal solutions.
Uber acknowledged that it had underestimated drivers' pay in Philadelphia by millions of dollars...
Well, fuck uber. Why are they "estimating" driver's pay? It is right there on the (paper or electronic) receipt and does not require estimating at all. Oh, but it's uber so it's special?
Uber doesnt pay taxes, they are based in Luxembourg.
When the IRS classes there drivers as W2 they will have to employment taxes.
Uber seems to have screwed the pooch in just about every area possible lately. What is it, greed, ignorance or simply mendacity? All three?
Can't really be all that shocked to find out that a company that, when given a choice, ALWAYS chooses the shady path. Whether it's ignoring local laws, tracking officials, stealing trade secrets from competitors, or mistreating employees, the behavior of the company is a direct reflection of the character - or rather the lack of - flowing directly from its leadership. So sad to hear that little guys got screwed, again, but alas not any surprise. Just another day in Uber-land.
Hey, Windows users, there is no such thing as "forward" slash, there is only slash and backslash.