California and three city attorneys are suing Uber and rival Lyft over driver classification under AB5, in a case that continues, but now will look at conduct only before Prop 22 took effect.īut on the streets, the move backfired. Uber argued in court last summer that drivers’ ability to see destinations and set prices meant they were truly independent. Riders no longer saw pricing before a ride. Drivers could set their own price as a multiple of an Uber base price, could see where riders were going, and could reject ride requests without penalties. Uber’s goal was to show that drivers had more freedom and flexibility and thus fit those requirements. It relies on a test that says workers are employees unless they work free from a company’s control, do work not central to a company’s core business, and have their own independent enterprises in that line of work. AB5 makes it harder for companies to claim that workers are not employees. In January 2020, days after AB5 took effect, Uber made the changes, saying they were “due to new state laws” and warning riders that they might have a harder time finding a ride. “Uber is re-evaluating past changes we made in California so we can make Uber more reliable,” the company told The Chroncle.

Uber no longer has to worry about proving that drivers are independent contractors, because Prop 22 - the November ballot measure that Uber and fellow gig companies spent $220 million to pass - enshrines their non-employee status. Too many drivers cherry-pick lucrative rides and decline other requests, making the service unreliable, the San Francisco company said on Monday.

The seesaw may disappoint drivers who appreciated that extra control over their work. Now, Uber is acknowledging that the move has hurt business and is considering axing its visible destinations and price-naming policies, The Chronicle has learned. It was part of the company’s strategy to block drivers from being reclassified as employees under AB5, California’s gig-work law. James / The Chronicle Show More Show LessĪ year ago, Uber let its California drivers see ride destinations before picking up passengers and let them set pricing in an effort to prove that the drivers were truly independent contractors. Uber said airport acceptance rates are down in California because drivers can see destinations upfront and reject rides. Uber driver Omer Iltas prepares to pick up a customer at SFO in August.

James / The Chronicle Show More Show Less 2 of2 Uber may end a feature that let drivers see destinations upfront and set pricing for rides. Uber driver Jorge Torres, 29, looks at his phones for ride pickups at a Shell gas station near the Oakland International Airport in October.

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