Tuesday, May 23, 2017

Uber Owes Some NYC Drivers Up To $45M After Miscalculating Commissions

Leave it to Uber to "miscalculate" commissions and then send out a spammy e-mail asking for driver's bank account information. Jeez.  

Since Nov. 2014, Uber has been deducting its commission (reportedly around 25%) on each ride before applying sales tax. So if the total value of a fare was $20, Uber would help itself to $5. Assuming $1.60 in tax, that left the driver with $13.40. Problem is, the 2014 agreement with drivers said that Uber was supposed to be taking this cut after taxes. That means, using the above example, Uber should have only collected $4.60 for itself, leaving $13.80 for the driver.