Uber is so upset with California’s new law making Uber drivers employees that it is experimenting with an end-run to get around the legislation.  It is telling some of its drivers to set their own fares for passengers.  While this might survive a legal challenge, it could well be a PR and marketing nightmare.  What will passengers say when a driver jacks the usual fare by 25 percent because he thinks he can get away with it?  Not only will there be an upset customer but it will lower chances the rider will ever use Uber again.  Uber can give a suggested fare and leave it up to the driver to determine if that is what he wants to charge, but inevitably pricing will go awry.  Taking an Uber will be rolling dice in a casino.  It’s not a great idea and there is a good chance Uber will not roll it out to all of its California drivers because of an administrative nightmare and consumer agita.  Maybe Uber will have to give in after all and treat its drivers like employees.

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