Uber tests new system that allows drivers set their fare rates

01/24/2020

Posted by: Chris Odogwu

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Uber has just tested a new system that allows its drivers to set their fare rates. The initiative has both advantages and disadvantages.

With more taxi hiring services springing up on a daily basis, there is little or no room for mediocrity. Pioneer of modern-day taxi-hailing service, Uber, is constantly stepping up their game to be ahead of the competition. The company has just concluded a test of an initiative to allow its drivers to set their fares. The new system was tested with drivers in the United States – particularly in Sacramento, Santa Barbara, and Palm Springs.

uber-driver

Drivers can set their fares right on the Uber app

Drivers on the platform get to choose how much they want to charge passengers for UberXL and UberX rides. The laudable development is in reaction to a bill recently passed in California called the Gig Law. The bill upholds the rights of all workers, stating that as employees, they are entitled to benefits are work.

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According to stakeholders, the new system has its good and bad sides. On the positive side, it allows drivers to work according to their schedule and possibly earn more. But on the downside, in a bid to have more rides, drivers might be forced to lower their rates all the way down. If all Uber drivers choose to raise their rates very high, the customer would be the one to feel the brunt. And when there are several alternatives available, the joke will be on Uber in the long run as customers would simply move on to the next available option.

Do you see this working in a country like Nigeria?

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Chris Odogwu

Chris Odogwu

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Chris Odogwu is a Content Writer and Journalist. He holds a bachelor's degree in Mass Communication from University of Jos and a master's degree in Mass Communication from University of Lagos. His works have been published in top local and international publications including Forbes, HuffPost, ThriveGlobal, TheNextScoop and Nigeria360 among others. A member of the Nigerian Institute of Public Relations (NIPR), the thrill he gets from writing about exotic cars feels almost the same as riding in them.

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