Uber Making Big Changes as New Work Law Goes Into Effect

By:  |  Category: Blog Saturday, January 11th, 2020  |  No Comments

Uber is drastically altering their app in California to comply with the state’s new work law that makes it harder for the company to classify drivers as independent contractors.

On Wednesday, Uber contacted through email over 150,000 drivers and millions of passengers to communicate the changes.

Changes are:

  • New estimated price range vs upfront price
  • Allow users to select preferred drivers
  • Discontinue certain benefits associated with its Uber Rewards program.

The email from Uber stated, “Due to a new state law, we are making some changes to help ensure that Uber remains a dependable source of flexible work for California drivers.

These changes may take some getting used to, but our goal is to keep Uber available to as many qualified drivers as possible, without restricting the number of drivers who can work at a given time.”

According to the Verge, the company is betting “that by giving drivers more control over their rides and making fares more transparent, they can avoid some of the repercussions of the law, which enshrines the so-called “ABC test” for determining whether someone is a contractor or employee. But it could also result in more rejected trips for passengers. Uber, which has hemorrhaged money since its disastrous IPO last year, is dead set against classifying drivers as employees.”

Uber clearly doesn’t think the new state laws are beneficial to customers but are forced into compliance. In a statement, a spokesperson for Uber said that “AB5 threatens to restrict or eliminate opportunities for independent workers across a wide spectrum of industries, including trucking, freelance journalism and ridesharing.”

If you need assistance with IT Managed Services or Security contact EnhancedTECH at 714-970-9330.

Source: Uber email

https://www.sfchronicle.com/business/article/Uber-makes-major-changes-to-California-rides-as-14957326.php

https://www.theverge.com/2020/1/9/21058356/uber-app-changes-california-ab5-gig-work-law-driver

Image Source: https://www.pexels.com/photo/uber-smartphone-iphone-app-34239/



Samantha Keller

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