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Uber is considering ending California’s driver pricing policy: report



Uber could stop allowing drivers in California to set prices and see customer destinations, according to a recent report.

The Ride Greeting app began testing these policies in January 2020 as a way to avoid California’s gig labor law, AB5, which requires companies to treat gig workers as employees.

By allowing drivers to set fares and see customers’ destinations before picking them up, Uber said it gave drivers more flexibility and control, FOX Business reported at the time.

But more than a year later, the company allegedly admits that these policies have been bad for business and have made the app unreliable, the San Francisco Chronicle reported Monday.

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An Uber spokesman declined to comment to FOX Business on the possible policy change.

Uber could 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 denied more than 80% of their riding requests.

“Uber is evaluating previous changes we’ve made in California so we can make Uber more reliable,” the company reportedly told the Chronicle.

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In particular, the company said that service to and from airports has been 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 airport in the United States.

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If Uber decides to stop allowing drivers to set prices and see destinations, the company will no longer have to worry about violating AB5 because California passed Proposition 22 in November.

Prop 22 allows drivers for companies like Uber and Lyft to remain independent contractors, FOX Business reported when the bill was passed.

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The poll initiative was one of the most expensive in California history, with companies like Uber and Lyft spending approx. $ 200 million on advertising, and workgroups spent 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 prices for riders in California. The companies have more than 400,000 drivers in the state.

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FOX Business’s Bradford Betz contributed to this report.


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