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Tags: Uber | ride-sharing | company | bookkeeping

Uber Refunding NYC Drivers $45M After Shorting Them

Uber Refunding NYC Drivers $45M After Shorting Them
(AP Photo/Thein Zaw)

By    |   Tuesday, 23 May 2017 06:11 PM EDT

Uber made a bookkeeping error that could cost the ride-hailing company at least $45 million.

According to The Wall Street Journal, Uber shortchanged its drivers in and around New York City by miscalculating the amount it takes per ride for two and a half years.

All of the drivers will get a refund averaging about $900 each. With an estimated 50,000 drivers, that could total $45 million or more.

The mistake, the Journal reported, was discovered when the company was creating a new receipt for drivers. Uber generally nets 25 percent from each fare. The accounting error in New York happened because Uber did not properly factor out taxes and fees, so drivers earned slightly less per fare than they should have.

Uber earned $6.5 billion in revenue last year, although it posted a net loss of $2.8 billion. The company announced last month it would like to have working prototypes of flying cars by 2020.

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US
Uber made a bookkeeping error that could cost the ride-hailing company at least $45 million.
Uber, ride-sharing, company, bookkeeping
157
2017-11-23
Tuesday, 23 May 2017 06:11 PM
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