Slashdot Mirror


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."

32 comments

  1. This is by Dunbal · · Score: 2

    The technique commonly known as "robbing Peter to pay Paul".

    --
    Seven puppies were harmed during the making of this post.
    1. Re:This is by Anonymous Coward · · Score: 0

      Why not just murder Peter?

    2. Re:This is by Joe_Dragon · · Score: 2

      and then we will pay 30K-40K / year to lock up paul.

    3. Re:This is by Anonymous Coward · · Score: 0

      Why not just murder Peter?

      Let's not give Uber any ideas...

    4. Re:This is by Anonymous Coward · · Score: 0

      "robbing Peter and Paul to pay Travis"

      ftfy

  2. $900 payout! WooophooooWoooopp by Anonymous Coward · · Score: 0

    Watch those ubermenchen spend it all in one place.

    1. Re:$900 payout! WooophooooWoooopp by Anonymous Coward · · Score: 0

      But your mama only charges $5.

    2. Re: $900 payout! WooophooooWoooopp by Anonymous Coward · · Score: 0

      Bam!

    3. Re:$900 payout! WooophooooWoooopp by davester666 · · Score: 1

      Mouth is only $5. The other ports are more.

      --
      Sleep your way to a whiter smile...date a dentist!
    4. Re:$900 payout! WooophooooWoooopp by thomn8r · · Score: 1

      Mouth is only $5. The other ports are more.

      How much for the SCSI?

  3. Lyft by 110010001000 · · Score: 0

    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.

    1. Re:Lyft by Anonymous Coward · · Score: 0

      "We're very sorry that we got caught and we'll do our very best to make sure it doesn't happen again," may not be the most original news in the world but at least it isn't an opinion piece per se.

    2. Re:Lyft by Anonymous Coward · · Score: 0

      Plenty of reasons to hate Uber and their evil under-handed ways. No need to bring Lyft into this.

    3. Re:Lyft by Hentes · · Score: 1

      While the chain of slanderous articles attacking Uber was definitely suspicious, they did manage to dig up some actual dirt. At which point it doesn't matter who is orchestrating the thing, Uber was caught doing naughty stuff and they are getting some well deserved hate for it.

    4. Re:Lyft by DRJlaw · · Score: 4, Interesting

      Give it up Lyft. No one is using you.

      I used Lyft twice last week. I also deleted the Uber app earlier this year and have pretty much devided that I'll use a taxi before supporting Kalanick's demon spawn of a company.

      So there.

    5. Re:Lyft by Anonymous Coward · · Score: 0

      Right, the whole twitter #deleteuber and my own circle of friends in NYC are all false and all those Lyfts we're taking are actually Ubers. Thank you for your vague, unverified claims; they really contribute to the discussion.

    6. Re:Lyft by gnasher719 · · Score: 1

      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.

      Nice reaction. It seems this is not a "hate story", but just a case of Uber badly miscalculating what they should pay drivers according to their contracts (and according to common sense). It seems that Uber paid drivers a percentage of payment minus taxes, so the drivers then had to pay most of those taxes, while Uber kept the money in their pocket.

  4. Different pay discrepancy by Anonymous Coward · · Score: 0

    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?

    1. Re: Different pay discrepancy by Anonymous Coward · · Score: 0

      All the issues are belong to Uber

  5. Uber, in a nutshell: by Anonymous Coward · · Score: -1

    "You're telling me, that a supermodel hit on you?" said George, shaking his head in disbelief,"How do you do that?"

    "I didn't say she was a supermodel," said Jerry, he was holding a rolled up newspaper"But the option was certainly available to her."

    "You're telling me that you were hit on by a woman who is so beautiful, she can choose whether or not she wants to be a supermodel or not!" cried out George,"Great, just great - why I can't have such luck is beyond me."

    "Just listen," cried Jerry,"Is that so much to ask that you listen?"

    "Oh, I can listen pal - I'm the king of the listeners. If they held a competition for best listener I wouldn't even enter - because I'm so assured of victory, it would ruin it for everyone else."

    "You can sure talk for a listener."

    "Haha, wiseguy."

    The buzzer went of, Jerry walked over to it and held down the button,"Yeah?"

    "It's me," came Elaine's voice.

    "Come on up," he buzzed her in and opened the door.

    "So anyway," he continued,"She walks up to me on the street and says to me 'Could you do me a favor and hold this paper for just a second, I'd be really grateful."

    "Hang on," interrupted George,"How did she say 'really grateful'?"

    "It was kind of a deep throaty 'promise of things to come' 'really grateful'"

    "You're sure, she didn't have the flu?"

    "No she didn't have the flu, now listen."

    "I'm listening!"

    "So I say 'no problem' and she walks inside the building, and I'm waiting, thinking about the great sex I could possibly be having......."

    "Now see, I never do that, thinking about get's you all hyped up and you're bound to be disappointed in the end."

    "What are you talking about? Fantasy doesn't build you up."

    "It build's you up!"

    "Just shut up and listen!" Jerry cried out.

    "I'm listening!"

    "So I'm waiting like five minutes......"

    "Five minutes?"

    "Five minutes, how long would you wait?"

    "Well it depends on the person, but a woman as beautiful as that......at least till Christmas."

    "Christmas?"

    "Hey, for sex with a beautiful woman I think she at least deserves until Christmas."

    "You're pathetic."

    "Finish your story," said George,"I do have a date tonight you know."

    "You love telling people that don't you?"

    "You wanna tell the story or not?"

    "Okay then, so I'm getting impatient and I look through the glass, and I see her hugging this guy!"

    "What? she asked you to hold her paper, told you she'd be grateful and now she's hugging another guy?"

    "Exactly, she's a temptress!" exclaimed Jerry,"I think she does it for thrills, leaves guy's hanging around outside in the cold for hours on end....."

    "Five minutes."

    "Okay, five minutes - hours on end, what's the difference?"

    "I said that to my first girlfriend, believe me, it makes a difference."

    "But can you believe it? She's in there hugging another guy."

    "So what did you do?"

    "I left."

    "And the paper?"

    Jerry smiled and held up the paper in his hand, "She'll have to buy a new paper for holding me up, my time is money!"

    "What, a nickel a minute?"

    "You're a real understanding guy you know that?"

    Elaine stepped into the apartment, she slammed the door shut and stared at George and Jerry fiercely.

    "Wow, aren't you a little Xena Warrior Princess here?" joked Jerry.

    "You know, that Lucy Lawless is really attractive, I would like to go out with her," mused George.

    "Are you kidding, you couldn't get Lucy Lawless," said Jerry.

    "Why couldn't I get Lucy Lawless?"

    "She's way too tall for you."

    "You think?"

    "I know."

    Elaine shook her head and cried out,"Shut up, I have something to say here!"

    "Tell George," said Jerry with a smile,"He's a great listener."

    George smiled,"At least I don't steal papers from supermodels."

    "

  6. Laws by manu0601 · · Score: 1

    It seems Uber will always wait to be in court to consider laws as relevant for them.

  7. Plus Interest? by wisnoskij · · Score: 2

    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.
  8. Yeah right by Anonymous Coward · · Score: 0

    Funny how they never underestimate their cut.

  9. Welcome to the gig economy... by matbury6017 · · Score: 4, Insightful

    ...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.

  10. What estimation required? by Anonymous Coward · · Score: 0

    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?

    1. Re:What estimation required? by Joe_Dragon · · Score: 1

      But they control people like W2 workers But they pay and list them as 1099 workers. Also there time clock is set up so they only get paid for some work tasks.

      Where there estimations based on full 2-8 work days at say $15-$20/hr (car reimbursement mixed in but some what hidden).

      But they only paid for driving miles + some wait time.
      But not
      * Driving to the pickup
      * Waiting at pickup site
      * Limited waiting pay for stuck in traffic.
      * Waiting for next pick up after an ride
      * Limited pay for long ride return.
      * Limited to no wait pay at an airport que.

  11. what taxes ? by Anonymous Coward · · Score: 0

    Uber doesnt pay taxes, they are based in Luxembourg.

  12. When the IRS classes there drivers as W2 they will by Joe_Dragon · · Score: 1

    When the IRS classes there drivers as W2 they will have to employment taxes.

  13. Uber not so Über by LesserWeevil · · Score: 2

    Uber seems to have screwed the pooch in just about every area possible lately. What is it, greed, ignorance or simply mendacity? All three?

    1. Re:Uber not so Über by fluffernutter · · Score: 1

      They seem to be under the impression that a successful business only takes an app. Obviously they also found many investors who thought the same thing. Now they are finding out there is more to it than just having an app.

      --
      Laws are rules for the court, but merely a bottom bar to hit for life. Think beyond laws in your actions always.
    2. Re:Uber not so Über by Anonymous Coward · · Score: 0

      They have always been fucking the pooch. It just takes a long time for individual people to organize and start fighting back. Most settle out of court with NDAs. The person gets what's owed to them and the company still gets to scam millions of others.

  14. Is anyone really surprised? by mccrew · · Score: 1

    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.