Uber Will Have To Compensate NY Drivers, Each Will Get An Average of $900

Self-driving Ford Fusion prototype employed by Uber in Portland 1 photo
Photo: Uber
Uber will have to pay back an estimated $45 million to approximately 50,000 drivers in New York City.
Apparently, the ride-hailing giant took a bigger share of passenger fares, and each driver who was active during that period will get an average of $900 in restitution.

The estimated payments come from the Independent Drivers Guild of New York, but the precise figures should be announced at a later date.

The difference came from an incorrect calculation of Uber’s share of the passenger’s fares, which was taken from the pretax sum. Instead of the described practice, the company should have followed its terms of service and should have gotten its "slice" from the amount that remained after fees and taxes.

Just like other cases like this, the issue was raised in a lawsuit, and it is not the only one against the company. The head of Uber’s operations in the USA, Rachel Holt, stated that the firm is committed to paying back every penny that it owes to every driver, plus interest, as quickly as possible.

The representative of the start-up turned giant also noted that the company is working hard on improving user and driver experience, along with focusing on sticking to its word and being transparent.

Just like any other idea that turned into a billion-dollar business, things are never as easy as they seem, and there will be some people who are not happy about something.

According to the Taxi Workers Alliance’s executive director, Bhairavi Desai, Uber owes much more to its drivers than it admits, and other unlawful deductions were performed over the years, Bloomberg remarks.

Recently, the operator of the app has modified its terms of service for the drivers, which now involves experiments with the way it calculates the price for riders.

The alleged problem with the new plan is that some routes may be charged at a higher fare than others, all based on a continuously-updated algorithm of “collective willingness” to pay a particular sum instead of a classic rate.

In other words, Uber is thinking how it could charge some users more than others based on their habits and the areas they are traveling to and the starting point of the trip.
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About the author: Sebastian Toma
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Sebastian's love for cars began at a young age. Little did he know that a career would emerge from this passion (and that it would not, sadly, involve being a professional racecar driver). In over fourteen years, he got behind the wheel of several hundred vehicles and in the offices of the most important car publications in his homeland.
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