Uber Owes Its New York City Drivers Millions After Accounting Error

By Caitlin HustonMarketsMarketWatch Pulse

Uber Technologies Inc. owes New York City drivers millions of dollars, after the company incorrectly calculated the commission it takes from fares, The Wall Street Journal reported Tuesday. Uber typically takes a 25% commission from fares and incorrectly calculated the amount before taking sales tax and an injury compensation fund fee into consideration. The Wall Street Journal reported that Uber would refund drivers about $900 each, which includes the original amount plus interest. The Wall Street Journal calculated that the mistake would cost Uber at least $45 million, based on the 50,000 drivers in the New York Independent Drivers Guild.

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