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According to a recent report, Uber may stop setting drivers in California rates and seeing customers’ destinations.
The ride app began testing policy in January 2020 as a way to circumvent California’s gig workers law, AB5, which requires businesses to treat gig workers like employees.
By allowing drivers to set rates and see customers’ destinations before they pick them up, Uber said it gives drivers more flexibility and control, FOX Business reported at the time.
More than a year later, however, the company acknowledged that the policies were bad for business and made the app unreliable, the San Francisco Chronicle reported Monday.
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A Uber spokesman declined to comment to FOX Business on the possible policy change.
According to recent reports, Uber may stop setting drivers their own fares or see the destinations of passengers before picking them up. (iStock)
However, the company reportedly told Chronicle that a third of its drivers in California refuse more than 80% of their ride requests.
“Uber is reviewing the previous changes we made in California so we can make Uber more reliable,” the company reportedly told Chronicle.
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The company in particular said that the service to and from airports is most affected. According to the Chronicle, the weekly completion rates for airports in San Francisco and Los Angeles are below 60%, reportedly lower than any other major airport in the US.
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If Uber decides to stop allowing drivers to set rates and see destinations, the company will no longer have to worry about violating AB5 because California passed Proposition 22 in November.
Prop 22 allows executives for companies such as Uber and Lyft to remain independent contractors, FOX Business reported when the bill was passed.
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The voting initiative was one of the most expensive in California history, with companies like Uber and Lyft spending about $ 200 million on advertising and workgroups spending about $ 19 million.
If Prop 22 were to fail, Uber and Lyft said they would be forced to reduce the number of workers and raise prices for riders in California. The businesses have more than 400,000 managers in the state.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| UBER | UBER TECHNOLOGIES, INC. | 58.03 | +0.63 | + 1.10% |
FOX Business’s Bradford Betz contributed to this report.