Due To New California Law, Uber Allows Some Drivers To Set Their Own Rates

Uber's new pricing feature is part of an effort to give drivers more control — and bolster the argument that they're truly contractors rather than employees.

The experiment underway at three airports comes in reaction to a recent state law that makes it harder to classify people as contract workers rather than as employees.

Uber is currently testing a feature at airports in Sacramento, Palm Springs and Santa Barbara that allows drivers to increase fares in 10% increments, up to five times the base rate. Riders are then matched with the lowest fare.

In the coming days, Uber says it will also allow drivers to decrease their prices below the base rate and opt out of surge pricing. It's part of an effort to give drivers more control — and bolster the argument that they're truly contractors rather than employees.

The company acknowledges the experiment could have unexpected consequences.

Source: NPR, article

 

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