Skip to main content

Uber responds to gig-economy law by testing driver-led bidding system

 

Uber drivers in California will be able to set their own fares as part of a new pilot program, which the rideshare company is testing as a response to the state’s new gig-economy law that categorizes individual contractors of a company as employees. 

Recommended Videos

The Wall Street Journal reports that the company will begin testing the feature starting Tuesday, January 21. Drivers with passengers going to or from the Santa Barbara, Palm Springs, or Sacramento airports can charge their passengers up to five times the regular ride fare. 

Image used with permission by copyright holder

However, that doesn’t mean that all ride prices will necessarily go up. The Journal reports that the update would essentially create a bidding system, allowing drivers to increase fares only in 10% increments at a time and up to a maximum of five times the regular price. Uber will automatically match a rider to the driver with the lowest price, and those drivers who have higher fares will be paired with rides once the demand for rides increases. 

Please enable Javascript to view this content

“Since [Assembly Bill 5] has gone into effect, we’ve made a number of product changes to preserve flexible work for tens of thousands of California drivers. We’re now doing an initial test of additional changes which would give drivers more control over the rates they charge riders,” an Uber spokesperson told Digital Trends.

The new updates are reportedly Uber’s way of furthering their stance that their drivers are independent of the company as contractors, rather than regular employees as the new law states. Assembly Bill 5 went into effect in California on January 1, requiring companies to treat their contractors the same way they treat regular employees. Contractors are now eligible for basic protections such as minimum-wage requirements, health benefits, and Social Security, 

Uber has previously voiced that it is against the bill, and its drivers are, too. 

“Several previous rulings have found that drivers’ work is outside the usual course of Uber’s business, which is serving as a technology platform for several different types of digital marketplaces,” Uber chief legal officer Tony West said during a conference call back in September. 

“There would be real changes in the way that drivers interact with the platform, and based on what drivers tell us, they are not changes that they would welcome,” West added. 

Allison Matyus
Former Digital Trends Contributor
Allison Matyus is a general news reporter at Digital Trends. She covers any and all tech news, including issues around social…
Soon you’ll be able to enjoy Dolby Atmos Music in Cadillac EVs
A red Cadillac EV on a dark background with the Dolby and Cadillac emblems underneath.

Dolby Atmos is a pretty remarkable experience when heard within a properly tuned car cabin setup, as implemented by Rivian R1S and the Cadillac Optiq, in particular. Now, Dolby and Cadillac have announced that Atmos will be support across the entire line of Cadillac EVs -- which includes the Escalade IQL, Escalade IQ, Lyriq-V, Optiq (as we heard at CES), and Vistiq. Support will also extend into select 2025 models with an over-the-air update, although which are not a part of this announcement.

As we now seem to be spending more and more time in our cars (according to the Federal Highway Administration, Americans drive a staggering 3 trillion miles a year), having the best possible sound in our cars is even more desirable than in the past. As John Couling, Senior Vice President of Entertainment at Dolby Laboratories says, "Whether you are listening to music to pass the time on a long commute or sharing a special moment on a family road trip, music has the power to transform mundane moments into something remarkable." Chief Engineer at Cadillac, John Cockburn adds, "Together, [Cadillac and Dolby] are taking audio to new heights by ensuring the music experience stays true to the artist's original vision, delivering a sound experience that makes consumers feel like they are in the music studio with them."

Read more
This DJI kit launches drones from a car roof
DJI and BYD have teamed up to put a drone station on top of a car.

Drone specialist DJI has partnered with Chinese auto giant BYD to create Lingyuan ("Sprite Kite"), which puts a drone station on the top of a car.

At first glance, the idea looks a little goofy. Actually, it looks a little goofy at second glance, too. But trust us, this is for real. You can check it out in the video ad below:

Read more
Morgan’s new Supersport is a charming British classic to rival Porsche
Morgan Supersport

Classic British sports car brand Morgan has unveiled its newest model: the Morgan Supersport, designed to have all the fun and stylish charm that the brand is known for, but in a package that's easier to live with for your practical car needs.

Morgan holds a cult status among classic sports car fans, but its cars are typically considered fun weekend indulgences rather than something you'd actually use day to day. But the Supersport could change that, with a hefty BMW engine, softer and more comfortable handling, and reduced drag thanks to computer-aided design. Overall, it's an attempt to position the Supersport as a meaningful alternative to, say, a Porsche 911.

Read more