Uber Switching From Upfront To Estimated Pricing In California Over New Gig Economy Law

SACRAMENTO (CBS13) – In another salvo over AB5, Uber is changing up how many California users will be charged for a ride.

On Wednesday, Uber users reported getting an email from the company that announced that an upfront price will no longer be given for any non-Pool (like the rideshare company’s most popular option, UberX) trips. Instead, riders will see a price range that Uber says is their best estimate of how much the trip will cost.

The final cost will be based on the actual time and distance that was traveled during the trip.

Uber launches changes to its app in California. This is part of Uber's internal effort, Project Luigi, to beat California's "ABC test" that could force it to classify drivers as employees, which we reported on Monday: https://t.co/fsTodbNKdw pic.twitter.com/dq8SLijo97

— Faiz Siddiqui (@faizsays) January 8, 2020

Uber is citing AB5, the new California law that makes it harder for companies to treat workers as independent contractors, as the reason for the pricing structure change.

“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,” Uber wrote in an email to users about Wednesday’s change.

Uber has been one of the biggest opponents of the new law. Along with Postmates, Uber filed a lawsuit in federal court last week challenging AB5.

Along with the pricing change, Uber announced other changes like allowing riders to seek out drivers they’ve added as “favorites.”