Business Standard

Wednesday, December 25, 2024 | 10:54 PM ISTEN Hindi

Notification Icon
userprofile IconSearch

Uber aware of wrong cuts from drivers' earnings as early as 2015

Problem with commissions has arisen amid driver discontent over a range of issues

Photo: Reuters
Premium

At the moment, Uber’s brand is in tatters. It has weathered a long series of scandals and controversies stemming from its aggressive fight against regulators and competitors. <b>(Photo: Reuters)<b>

Noam Scheiber
Uber said last week that it had recently discovered an accounting error that had deprived New York drivers of tens of millions of dollars, and vowed to pay back drivers every cent, with interest.

Now evidence has emerged suggesting that Uber and New York State regulators were aware of the improper deductions from drivers’ earnings as early as 2015.

The error involved Uber’s taking its commission on fares that included sales tax, rather than on the pretax portion of the fare. If, for instance, a passenger paid $20 for a ride, and if taxes accounted for roughly $2 of that fare, Uber

What you get on BS Premium?

  • Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
  • Pick your 5 favourite companies, get a daily email with all news updates on them.
  • Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
  • Preferential invites to Business Standard events.
  • Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.
VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in