Uber experiment lets California drivers set their own fares

From Tuesday early morning, drivers operating around airports in Santa Barbara, Palm Springs and Sacramento will have the ability to participate in a bidding system that permits them to increase fares in 10 percent increments, as much as an optimum of 5 times the typical Uber price. When a trip is asked for, Uber will match the rider with the motorist with the most affordable price. Drivers charging higher fares will gradually be dispatched as demand for trips increases.

The function is clearly planned to provide drivers more autonomy and follows a number of other recent efforts by the business, created to support its argument that as an innovation platform and not a transport service, its motorists can not be classified as employees. Nevertheless, this trial might kick up some unexpected consequences. Setting fares expensive might lead to less trips for drivers, and a less consistent service for riders, who might simply opt to utilize Lyft– which hasn’t made any modifications to its service– rather.

As reported by the Wall Street Journal, an individual acquainted with the new function states that Uber is trialling it in smaller sized cities in a bid to restrict prospective damage to its organisation. Nevertheless, the business will utilize feedback from the preliminary pilot to choose whether to broaden fare-setting somewhere else.