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Uber may stop allowing drivers in California to set fares and view customer destinations, according to a recent report.
The free ride app began testing these policies in January 2020 as a way to circumvent California’s show worker law AB5, which requires companies to treat show workers as employees.
By allowing drivers to set fares and see customers’ destinations before picking them up, Uber said it was giving drivers more flexibility and control, FOX Business reported at the time.
However, more than a year later, the company is admitting that these policies were bad for business and made the app unreliable, the San Francisco Chronicle reported on Monday.
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An Uber spokesman declined to comment to FOX Business about the possible policy change.
Uber may stop allowing drivers to set their own fares or see passengers’ destinations before picking them up, according to recent reports. (iStock)
However, the company reportedly told the Chronicle that a third of its drivers in California refused more than 80% of their ride requests.
“Uber is reevaluating the previous changes we made in California so that we can make it more reliable,” the company told the Chronicle.
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In particular, the company said that service to and from airports was the most affected. According to the Chronicle, weekly completion rates for airports in San Francisco and Los Angeles are below 60%, reportedly lower than any other major US airport.
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If Uber decides to stop allowing drivers to set fares and see destinations, the company would no longer have to worry about violating AB5 because California approved Proposition 22 in November.
Prop 22 allows drivers from companies like Uber and Lyft to remain independent contractors, FOX Business said when the project was approved.
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The election initiative was one of the most expensive in California history, with companies like Uber and Lyft spending about $ 200 million on ads and labor groups spending about $ 19 million.
If Prop 22 had failed, Uber and Lyft said they would have been forced to cut the number of workers and raise passenger prices in California. The companies have more than 400 thousand drivers in the state.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| UBER | UBER TECHNOLOGIES, INC. | 58.03 | +0.63 | + 1.10% |
Bradford Betz of FOX Business contributed to this report.