UberX riders in California will now see only an estimated price range of their requested trip.
Uber Technologies Inc. rolled out major changes to its service in California on Wednesday — including removing a set, upfront price for some passengers — in response to a new state law seeking to reclassify its drivers as employees.
Uber UBER, +3.41% argues it is a tech company, not a transportation company, and that its drivers are independent contractors. Wednesday’s changes are meant to give drivers more choice about which rides they accept, making them appear more independent in the eyes of the law. — Lorena January 6, 2020 California’s AB5 went into effect Jan. 1, and was intended to force gig-economy companies to classify their drivers as employees rather than independent contractors — thus giving them better labor protections and benefits. Uber and delivery service Postmates sued in December, calling the law unconstitutional. Contract truckers and freelance journalists have also sought exemptions from the law, saying it will harm their livelihoods.
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