Uber Technologies Inc (NYSE:UBER) has announced an end to price protection for the trip and making changes to the App adhering to the new law – AB5 in California. As per the new law, the users need to pay the final calculated price at the end of the trip than the estimated price.
Californian authorities introduce a new law
Californian authorities have introduced a new law – AB5 to regulate companies that hire a large number of contract employees. In an email communication to the users, the ride-sharing company said it is incorporating changes to the app and ensure the company is the dependable and flexible source for the drivers in California. The company has withdrawn the Uber Rewards program for users in California.
Uber announces change in fare structure
Uber is planning to change the pay structure so that drivers will have independence from the platform and the company. According to a blog post, the company is also making changes to the service fee that it charges for drivers.
Uber has capped the service for UberX rides at 25% in California. The service fee for drivers of Lux Trips, SUV, comfort, and UberXL is capped at 28%. An estimated earnings report is available for the drivers rather than a fixed amount as per the recent change. However, it does not apply to carpooling. In carpooling, the drivers will receive final pay at the end, considering the time and the distance covered in each trip.
California introduced AB5 law, which is effective from January 1, 2020, to provide the same benefits (medical insurance and higher pay) to gig workers as enjoyed by the regular employees. Lyft and Uber are opposing the law, arguing that they only offer technology service to the customers and drivers and not engaged in the transportation business.
Uber introduces three safety features in India
To improve its services overseas, the American ride-sharing company is introducing three safety features for users in India. It will introduce a 4-digit authentication code to ensure that the user gets the right cab. Uber will intervene if there is a long and unplanned halt on a trip with effective from January 9, 2020. The drivers and users can also record the audio for the entire trip if they feel uncomfortable.