Uber Makes Gross Accounting Error, Owes Drivers Tens of Millions

By:
Chris Gaetano
Published Date:
May 24, 2017
By Yinxinybyq - Own work, CC BY-SA 4.0

Rideshare company Uber announced it will be paying its drivers tens of millions of dollars after discovering an accounting error that led the company to take its cut from the gross pay, instead of the net pay as outlined in the terms of service, according to Business Insider. The problem began when the company changed its terms of service in 2014, and as time went on, Uber wound up collecting about 2.6 percent more in service fees from its drivers than it should have. It discovered the error when updating its terms of service to account for its new route-based pricing. The company will contact any driver who has driven in the NYC area over the last two and a half years to inform them of the error and correct it. Business Insider said the average driver will get about $800 due to the mistake. 

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