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BIG News - Uber to Let Some California Drivers Fix their Own Fares

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“Uber is attempting to classify drivers as “Independent Contractors” under California Assembly Bill 5”.

In California, Uber experiments with a new feature that allows some drivers to fix their own fares for rides instead of Uber’s actual fare in certain circumstances as far as, report from The Wall Street Journal is concerned. Drivers will be able to increase charges in 10 percent increments, up to five times more than Uber’s fixed price that follows in response to the new Gig Work Law.

This new effective feature makes a bidding system where California drivers get the first customers with lower fares. Whenever demand increases, drivers have fixed the higher fares that will be matched with customers.

Forthwith, Uber tests the new feature that is limited to drivers who are riding from three airports such as Santa Barbara, Palm Springs, and Sacramento. Uber decides to apply in smaller cities in California to check how it works. Uber announced some other changes in California earlier in January that the fare-setting system is designed for drivers to ride independently in terms of the new state’s gig work law.

Uber’s new aim is to despite the state’s law - proceed to classify their drivers as individual workers for easy connection with riders. Classify their drivers as employees will cost the company more dollars a annum by pushing it to give some additional benefits such as overtime, insurance, wage guarantees and so on.

With a new fare-setting system, Uber already announced that their California drivers would get lots of trip details before accepting rider - includes distance, duration, estimated fare and drop off location. California drivers are now able to refuse ride requests even without penalties. In addition, California riders are henceforward given accurate upfront fare ; rather than Uber provides fare ranges to them along with final fare which depends on distance and duration. Also, there is an option to passengers who can select particular drivers as “favorites” for the purpose of requesting the same again.

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