Uber tests feature which allows drivers to set their own fares

Uber is trialling a new feature in California which allows a selection of drivers to set their own prices for rides instead of having to accept the prices set by Uber, according to a report from The Wall Street Journal (WSJ). The new feature reportedly allows the drivers to increase fares to up to five times more than the original price.

According to the WSJ, the feature lets drivers increase fares in 10 per cent increments, giving priority to drivers with the lowest set prices. As demand increases, drivers with higher set prices will be matched with riders, too. This is designed to notify drivers how long they will likely have to wait before picking up a passenger, meaning they have the choice to adjust the fare price accordingly.

The feature is currently limited to drivers who are going from airports in Santa Barbara, Palm Springs and Sacramento, with Uber reportedly testing the feasibility and how it works for drivers and customers in smaller cities like California, before rolling it out to larger cities.

The new system is said to be in response to Assembly Bill 5, which requires the company to treat its drivers as employees, and not independent contractors, which took effect on 1 January 2020. As part of the Bill, Uber also previously announced that drivers in California will get more trip information in advance of accepting a ride, including travel time, distance, destination and estimated fare – being able to reject ride requests without any penalties.