back to article Uber found to be doing something awful? Yep, it's Tuesday

Uber said today that it will hand drivers back pay that could add up to tens of millions of dollars. The dial-a-ride app maker said that some drivers in New York were incorrectly compensated (read: ripped off) for fares on some rides. The back pay is from what's said to be a "miscalculation" of the drivers' cuts of trip fares …

  1. elDog

    Gross/Net? This is confusing. Whose gross? Uber's or the driver's.

    Never having taken one of these alternative-modes I don't understand the cash flow.

    When the passenger pays $20 for a ride, isn't this gross to Uber? Wouldn't the driver have received a percentage of that figure rather than the post-tax/fee amount?

    As always, trying to write down my confusion just lets me know that I probably didn't understand the original language very well.

    1. InNY

      Re: Gross/Net? This is confusing. Whose gross? Uber's or the driver's.

      The drivers are responsible for the paying of any taxes to the relevant authorities; as they (Uber) state in the document highlighted in the article. They also stare that a drivers' compensation is calculated to include the taxes and other surcharges.

      So, Uber have done their usual and created another example of why they are not really a tech company, but highway robbers who do their trade using an unfathomably popular app.

      1. Headley_Grange Silver badge

        Unfathomably Popular?

        @InNY: I don't like or use Uber, but "unfathomably popular"? Have you ever used a cab? In my town....

        - no credit cards in half the cabs and the rest whack on a £3 or 5% charge (whichever's bigger),

        - filthy, uncomfortable, knackered cabs, with no heating in the rear in winter,

        - drivers who don't know where they are going,

        - cabs that don't turn up on time - or at all,

        - no cabs on the ranks late at night,

        - cabs that add on the station pick-up charge no matter where they pick you up,

        - no way to complain about any of the above which gets results nor any way to find out who the bad drivers/cabs are.

        The state has regulated Hackneys since the late 1600s and mincabs since the 60s and in those 300 odd years they've done virtually nothing to improve customer service other than implement general legislation (smoking, seatbelts, disabled access, etc). Getting a cab today was no different from getting a cab in 1965 - until along came Uber. I don't use Uber, their "self employed" model is disingenuous at best and they don't pay their fair share of tax (IMHO) - but they filled a hole that needed filling and, practically, one that could have been addressed by the regulating authorities any time in the last 10 years.

        1. InNY

          Re: Unfathomably Popular?

          Can't disagree with you about the state of cab's or the taxi business in general.

          As for the unfathomably popular bit? I prefer my muggers' to stand in front of me, not hide behind a smart phone app... :/

    2. allthecoolshortnamesweretaken

      Re: Gross/Net? This is confusing. Whose gross? Uber's or the driver's.

      This is easily explained: Uber is gross, and the drivers do not have a net.

    3. gnasher729 Silver badge

      Re: Gross/Net? This is confusing. Whose gross? Uber's or the driver's.

      Let's say the drive is $20 plus 10% tax. You pay $22. The driver will receive some amount and has to pay tax from it. Uber will keep some amount and will have to pay tax of it. Lets say Uber takes 30% (I have no idea what they take).

      They should hand to the driver 70% of $20 = $14, plus 10% tax = $1.40, and the driver then pays 10% tax and has $14. Or they could hand the driver just 70% of $22 = $15.40, and again the driver pays $1.40 tax and keeps $14. Instead, they just paid 70% of $20 = $14. The driver now had to pay the 10% tax out of this and lost $1.27. Uber on the other hand kept $8, paid 10% of that $8 = $0.73 (the numbers are odd because the total is 110%) and had $7.27 in their pocket.

      So it's Uber = $7.27 and driver = $12.73 after the tax is paid instead of the 30/70 deal which would be Uber = $6.00 and driver = $14.00. Quite a bad ripoff.

  2. Anonymous Coward
    Anonymous Coward

    RICO

    Law enforcement gas a tool to take down criminal enterprises.

  3. Anonymous Coward
    Anonymous Coward

    On every street in every city, there's a nobody who dreams of being a somebody.

    In cinemas 2018. Robert De Niro is, the Uber driver.

  4. Anonymous Coward
    Anonymous Coward

    It's tricky

    On one hand, I can see that Uber not paying drivers properly, giving them no rights, disobeying laws and running a sexist corporate culture is not so good, but on the other hand, being able to use a funky app on my iPhone to get a pristine BMW 7 series to take me from restaurant to club to penthouse is way cool. Try getting a black cab to do all that!

    So this totally isn't such a cut and dried issue as everyone thinks.

    1. Hollerithevo

      Re: It's tricky

      To me the car itself is irrelevant. Black cabs in London are always comfortable, and are safe vehicles (and take wheelchairs). I want a driver who know what s/he is doing, knows the short-cuts, and isn't glued to Tom-Tom or whatever. I have had black cabs take me to destination A, pop back, as arranged, a couple of hours later to take me to destination B, and then, later, from B to home. I like professional drivers who know the city.

      1. Anonymous Coward
        Anonymous Coward

        Re: It's tricky

        A few months back, whilst pulling up to the lights on my bike, I looked left to see a BMW Minicab (you know the stickers) with several phone / devices dotted about his windscreen and one on the drivers side air vent streaming football. The lights changed and it took a good few honks and a shout from his passenger before he pulled away....this is the state of London mini cabs, and don't get me started on black cab drivers, we have 3 in the family, all arseholes.

        If they didn't try cut and scam everyone they (UBER) could have a great long term model, instead they are trying to scam and muscle their company into first place

    2. ecofeco Silver badge

      Re: It's tricky

      Apparently obvious sarcasm not obvious to at least two people.

  5. John Smith 19 Gold badge
    Unhappy

    "The dial-a-ride app maker " No. The internet cabbie firm that's active in multiple jurisdictions

    FTFY.

    I think "Taxi Driver" is overdue a 40th anniversary remake (well script development can be kind of slow).

    Say hello to "Travider Bikle Singh, Asian taxi driver."

    "You looking at me, punk?"

  6. ecofeco Silver badge

    Millions?

    The drivers will be lucky to see tens of dollars.

  7. adam payne

    So people in the Uber finance department don't know the difference between gross and net.

    With the reputation of Uber in the toilet is this an attempt by them to look good? or is someone investigating them and they did this before being pushed? Surely a company giving money back is not normal.

  8. TeeCee Gold badge
    Facepalm

    Spot the lie.

    "We are committed to paying every driver every penny they are owed.........as quickly as possible,"

    Actually, as you have this problem, you very obviously aren't.

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