Uber said it “mistakenly underpaid” its New York City drivers by millions of dollars since 2014 for two and a half years, according to a report.
It is the second time over the past three months that the company admitted it short-changed its drivers of their earnings, the Wall Street Journal reported.
Uber was supposed to take a 25 percent commission from U.S. drivers after taxes and fees from each fare, according to a November 2014 nationwide driver agreement.
In New York City, Uber said that it cut a higher amount out of drivers’ earnings by taking the commission from the full fare before taxes and fees.
Uber told WSJ that it would refund drivers the money plus interest, amounting to $900 per driver on average, and said all New York City drivers are eligible to receive a refund as long as they made at least one trip since signing the driver agreement.
The company did not provide an estimate of how much the mistake would cost, but the New York-based Independent Drivers Guild estimates the cost would be at least $45 million.
“We made a mistake and we are committed to making it right by paying every driver every penny they are owed, plus interest, as quickly as possible,” Rachel Holt, Uber’s regional general manager in the U.S. and Canada, 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.”
Uber made a similar error in miscalculating driver fares in Philadelphia, refunding drivers millions of dollars, the Philadelphia Inquirer reported.
Uber has also had to deal with other public relations blunders over the past few months.
Uber CEO Travis Kalanick released an apology saying it is time for him to “grow up” in response to a video where he argued with an Uber driver who complained about the wages and said, “Some people don’t like to take responsibility for their own shit. They blame everything in their life on somebody else. Good luck!”