Uber could stop allowing drivers in California to set rates and view customer destinations, according to a recent report.
The ride-sharing app began testing those policies in January 2020 as a way to circumvent California’s contract worker law, AB5, which requires companies to treat workers like employees.
By allowing drivers to set rates and view customer destinations before picking them up, Uber said it was giving drivers more flexibility and control, FOX Business reported at the time.
However, more than a year later, the company admits those policies have been bad for business and made the app unreliable, the San Francisco Chronicle reported Monday.
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An Uber spokesperson declined to comment with FOX Business about the possible policy change.
However, the company reportedly told the Chronicle that a third of its drivers in California rejected more than 80% of their transportation requests.
“Uber is re-evaluating the past changes we made in California so that we can make Uber more reliable,” the company told the Chronicle.
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In particular, the company said that service to and from airports has been the hardest hit. According to the Chronicle, weekly completion rates for the San Francisco and Los Angeles airports are under 60%, reportedly lower than at any other major US airport.
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If Uber decides to stop allowing drivers to set rates and view destinations, the company would no longer have to worry about violating AB5 because California passed Proposition 22 in November.
Prop 22 allows drivers for companies like Uber and Lyft to remain independent contractors, FOX Business reported when the bill was passed.
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The ballot initiative was one of the costliest in California history, with companies like Uber and Lyft spending around $ 200 million on ads and labor groups spending around $ 19 million.
If Proposition 22 had failed, Uber and Lyft said they would have been forced to cut the number of workers and increase passenger prices in California. Businesses have more than 400,000 drivers in the state.
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Bradford Betz of FOX Business contributed to this report.