- Uber Technologies (NYSE:UBER) unveils major changes to its service in California in response to a new state law seeking to reclassify its drivers as employees.
- In the most prominent change, prospective passengers for private UberX rides will now see only an estimated price range of their requested trip, based on driving time and distance, rather than a set price.
- Uber drivers will be able to see a trip's time, distance, destination and estimated price ahead of time, and can reject requests without penalty, essentially giving them more freedom to refuse less-profitable trips.
- Uber contends its drivers are independent contractors, and the latest changes are meant to give drivers more choice about which rides they accept, making them appear more independent in the eyes of the law.
- The moves follow the enactment of California's Assembly Bill 5, or AB5, which took effect on Jan. 1 and establishes a test that employers must pass to classify their workers as independent contractors.