Uber has admitted to underpaying New York City drivers and says it will make it up to them with interest. In 2014, Uber agreed to charge drivers 25% of fares after fees and taxes were taken out. Instead it took its cut out of the full fare. The company says the problem affected tens of thousands of drivers and it plans to pay out an average of $900 per driver. This isn’t the first time Uber has been accused of misleading drivers on wages. In January, the company agreed to pay drivers $20 million to settle a Federal Trade Commission complaint that Uber was overpromising on potential earnings to lure drivers onto its platform.
“We are committed to paying every driver every penny they are owed—plus interest—as quickly as possible,” said Rachel Holt, regional general manager, U.S. & Canada, 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.”