Uber drivers decide fare price

Uber Drivers to Set Fares?

Will Uber let drivers set their own fares?

Reacting to California passing AB5, which requires rideshare drivers to become employees, Uber’s scrambling. They’ve rolled out a limited test to see what happens if they allow drivers to set their own fares.

Why would Uber do this? If drivers set their own fares, they look more like independent contractors.

Uber drivers set fares_WSJ

As the WSJ put it, “Uber’s latest changes will set up a bidding system that lets drivers increase fares in 10% increments, up to a maximum of five times Uber’s set price, the person involved in developing the feature said.

“That price includes base fare, time spent and distance covered by a driver. There is no limit on how often drivers can raise prices. Once a rider pings the Uber app at the locations in the pilot program, Uber will match the rider with the driver who has set the lowest price, the person said. Drivers who have set higher fares are gradually dispatched as more riders request rides.”

Uber drivers set fares_USA Today

If Uber allows drivers to set fares, expect Lyft and all rideshare partners will do the same.

Good or Bad for Drivers?

There are a few implications for drivers and riders if this becomes a standard feature in the next evolution of rideshare apps.

In this pilot test, it appears drivers set the price. Uber’s platform servers make the matching decisions, linking riders to the lowest bidders. Then the computer algorithms move down the list of driver ‘bidders’.

In this limited test of rides from airport environments, the app and the rider don’t need to factor in wait time.

Watch this Social Experiment Unfold

Inadvertently, Uber’s pilot test sets drivers up to create their own price wars or surges.

  • Will individual drivers bid low to get the business or will drivers ‘collectively’ go high?
  • Will this dynamic constantly play back and forth?

Uber Drivers Could Set Fares & More

This model could pave the way to the next leap in rideshare services.

Uber’s rider app could offer riders their choices and they make the selection as to which Uber they want.

That functionality opens the door to a driver pitching their profile and customizing their service, truly supporting the argument that rideshare drivers are independent contractors.

You may also like...

Popular Posts


  1. Incredible story there. What happened after? Good luck!

    My blog Best THC Gummies

  2. Having read this I thought it was extremely enlightening.
    I appreciate you finding the time and energy to put this article together.
    I once again find myself personally spending a lot of time both reading and leaving comments.
    But so what, it was still worthwhile!

    Here is my webpage … US Magazine (http://www.usmagazine.com)

  3. Does your website have a contact page? I’m having trouble locating it but, I’d like
    to shoot you an e-mail. I’ve got some recommendations for your blog you might be interested in hearing.
    Either way, great blog and I look forward to seeing it grow over time.

    Check out my web-site … weed dispensaries

  4. Thank you for the auspicious writeup. It in fact was a amusement account it.
    Look advanced to far added agreeable from you! By the way, how
    could we communicate?

    Feel free to visit my web page; delta 8 CBD (Natalia)

Leave a Reply

Your email address will not be published. Required fields are marked *