Uber is testing a feature that allows some California drivers to set their own fares.
Motorists ferrying passengers from airports in Palm Springs, Sacramento, and Santa Barbara may now charge up to five times the standard amount, as reported by The Wall Street Journal.
This “initial test,” according to Uber, gives chauffeurs more autonomy—a direct response to the state’s new gig-economy law, which paves the way for better labor protections.
California Assembly Bill 5 took effect Jan. 1, and entitles workers classified as “employees” (rather than independent contractors) to benefits like minimum wage, sick leave, unemployment, and worker’s comp.
Uber—which, alongside rideshare rival Lyft, has been reluctant to reassign drivers—argued that it is a technology platform not a transportation firm, so motorists are not “part of its usual course of business,” the WSJ said.
The San Francisco-based company, however, is slowly making changes to allow workers more control over certain parts of their job: Earlier this month, Uber added a “favorite driver” feature and replaced upfront pricing with price estimates.
“Since AB 5 has gone into effect, we’ve made a number of product changes to preserve flexible work for tens of thousands of California drivers,” an Uber spokesperson told Geek.com. “We’re now doing an initial test of additional changes which would give drivers more control over the rates they charge riders.”
“Since AB 5 has gone into effect, we’ve made a number of product changes to preserve flexible work for tens of thousands of California drivers,” an Uber spokesperson told Geek in an emailed statement. “We’re now doing an initial test of additional charges which would give drivers more control over the rates they charge riders.”
As part of the trial, Uber provides a base fare, which the driver can adjust in multiples of 0.1—from 1.0 to 5.0. So, as Geek.com sister site Mashable explained, a $10 trip could cost upwards of $50 if the user accepts that inflated tab.
Drivers, meanwhile, will soon have the option to opt out of surge pricing and set their costs below the Uber base—turning that $10 ride into an $8 trip.
“One thing that will be interesting to watch … is drivers who set their price too low,” former Uber and Lyft chauffeur Harry Campbell, owner of the Rideshare Guy Blog, wrote in a Tuesday post.
“Drivers often complain about over-saturation,” he continued. “So in a world where drivers have the ability to set their own rates, could this make it a race to the bottom?”
More on Geek.com:
- Lyft Debuts Car Rental Service in California
- Uber Reports More Than 460 Rape Claims in Two Years
- Uber Loses London License Over ‘Pattern of Failures’
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