Technology

Uber to refund NYC drivers after underpaying them for over 2 years

Uber said Tuesday it will refund its New York City drivers millions of dollars in backpay after shortchanging them for over two years.

Uber told The Wall Street Journal that it mistakenly took a higher cut out of drivers' revenue than was agreed upon in a nationwide contract with drivers in November 2014.

The ride-hailing app was supposed to take a commission of around 25 percent after taxes and fees, but Uber said that it had miscalculated and was deducting that commission from New York City drivers' gross fares.

Uber told the Journal that the payout will average out to about $900 per driver, though the company would give a total figure that it would be paying out. The newspaper reported that the payout will likely cost the company tens of millions of dollars.

"We made a mistake and we are committed to making it right by paying every driver every penny they are owed, plus interest, as quickly as possible," Rachel Holt, Uber's regional general manager for the U.S. and Canada, told the Journal 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."

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