Uber To Test New Feature With California Drivers
Recently, Uber revealed it is checking another new feature. It is in a bid that is apparently to mitigate the restrictions of Assembly Bill 5 better.
The feature obliges the firm to treat its drivers as employees and not independent contractors.
Meanwhile, some drivers in California will now have the capability to set their own fares. Some believed this could be up to five times the quantity typically set by Uber.
From Tuesday morning, drivers operating around airports in Santa Barbara, Palm Springs, and Sacramento will be competent to take part in a bidding system.
The procedure allows them to boost fares in 10 percent increments, up to a maximum of five times the typical Uber price.
Uber will match the rider with the driver with the cheapest price when a ride is asked for.
On the other side, drivers that charge higher fares will gradually be eliminated as demand for ride expansions.
The feature is clearly to give drivers more autonomy and follows a number of other current initiatives by the company.
In addition, it was designed to sustain its contention that as a technology platform and not a transportation industry, its drivers cannot be categorized as employees.
Unintentional Outcome Of The Trial
However, this trial may possibly kick up some unintentional consequences.
It is for the reason that setting fares too high may perhaps cause in a small number of trips for drivers. In addition, less continuous service for riders.
These are the ones who might simply go for the use of Lyft, which hasn’t made any adjustments to its service instead.
In a news report, a person familiar with the new feature reveals that Uber is conducting tests in smaller cities. It is due in a bid to restrict potential damage to its industry.
However, the firm will use feedback from the primary pilot to select whether to expand fare-setting elsewhere.
Elsewhere, Uber indicated it had sold its food delivery business, Uber Eats, in India to local competitor Zomato.
The selling was after the American ride-hailing giant races to get rid of loss-making operations. It is to become cost-effective by next year.
As part of the deal, Uber would own up 9.99% of Zomato.
Moreover, its Eats users would turn out to be part of the Indian company, the two loss-making firms stated.
According to two people familiar with the matter, the deal has estimated Uber Eats’ India business between $160 million and $200 million.
In a news report last month, the two disclosed they were in advanced stages of talks for a deal.
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