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Uber Plans Millions in Back Pay After Shortchanging NYC Drivers

May 23, 2017, 7:56 PM

Uber Technologies Inc. said it has underpaid its New York City drivers by improperly calculating the company’s share of passenger fares, and will pay each driver about $900 in restitution, costing the company tens of millions of dollars.

The ride-sharing company previously acknowledged that it misled drivers about how much they could make and that it miscalculated fares. In the latest incident, Uber was taking its cut of fares based on the pretax sum, instead of after taxes and fees as stated in its terms of service. The issue was also raised in a lawsuit against San Francisco-based Uber filed...

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