Uber is apparently testing a major change in its app. The company is testing a new system where some drivers will be able to set their own fares in California.
The move comes following California’s introduction of the new gig-economy law.
Uber’s new system will mean that drivers will be able to set their own fares as they like, but it’s only limited to drivers who are driving people from airports in Santa Barbara, Palm Springs, and Sacramento for now. Uber confirmed to WSJ that the company is indeed testing this new system and that it “would give drivers more control over the rates they charge riders.”
Uber drivers can only charge up to 5x the regular Uber fare in 10% increments. Here’s the interesting part, though: Uber will match users with drivers who have the lowest prices. And as demand increases, drivers with higher prices will eventually get matched with riders, too.
The change is quite significant for Uber and its users, if drivers are to take more control over their prices, riders may have to pay slightly more than before. Plus, Lyft is yet to announce any changes to its app following the new gig-economy law in California, so customers might find Lyft to be more viable in the near future.