Uber Allegedly Ripped Off Hundreds Of Millions From New York Drivers

The New York Times revealed that an improper Uber tax calculation may have shortchanged the company’s New York City drivers by more than $200 million.

Close up of Uber logo on black car's windshield

The ride-sharing giant Uber has found itself in hot water yet again after The New York Times revealed it has taken money from New York drivers’ paychecks.

“Uber receipts from other states reflect a tax accounting at odds with the company’s justification for deducting sales tax from the fares received by its New York drivers,” The New York Times reported.

Apparently, compared to other states, New York riders receipts showed a steep tax deducted straight from their bills while others had the taxes added to their overall fare.

Uber reportedly admitted back in May that the company took excessive commissions from New York drivers’ fares and committed to making things right, however, The New York Times report indicates that the company docked much more from drivers than it confessed to. The publication found evidence that the improperly-deducted taxes could amount to hundreds of millions of dollars. 

Based on data from New York City’s Taxi and Limousine Commission, Uber dispatched more than 125 million rides from the start of 2015 to mid-March of this year. With an average fare for those trips being $15, Uber would have taken more than $200 million for taxes and the workers’ compensation fund surcharge from drivers in that time frame, according to The New York Times report. 

Uber’s practices have come into question quite a bit recently. The company has made headlines for mistreating its drivers, and complaints of sexism and harassment have been lauded against it.

Additionally, the ride share service received backlash earlier this year after it was revealed that its CEO, Travis Kalanick, held a spot on President Donald Trump’s advisory board, sparking the #DeleteUber movement.

Amid all of the scandal, the company lost its president, Jeff Jones, back in March, and just last month, Kalanick — who co-founded the company in addition to serving as CEO — resigned under pressure from investors over his poor leadership as Uber’s reputation steadily declines. 

Although Uber continues to be a heavily-used, influential tech company currently, its future may be in trouble due to its controversial operations. Drivers and riders alike are becoming more skeptical of its ethics, or lack thereof. 

Perhaps new management can turn things around once and for all. 

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