SAN FRANCISCO—Uber is allowing drivers to determine their own fares in certain parts of California including San Francisco as of Thursday, July 23.

The fares riders pay to the drivers are based on a pre-set time and distance rate in many cities in California at the moment. With the new fare system, drivers can determine the price the rider pays.

Along with the change in July in some cities in California, an email with new guidelines was sent to Uber drivers which included rules related to COVID-19.

Both riders and drivers are required to wear a face covering when riding or driving with the company. Riders can now be held accountable for violating the face cover policy. If a rider is reported multiple times, they will lose access to the app.

According to the Uber officials, they have been testing the new system for several months and are still learning how it works for riders and drivers. Updates could be made to the system in the near future.

Uber was testing a similar feature at airports in Sacramento, Palm Springs and Santa Barbara, which allowed drivers to increase fares in 10 percent increments, and five times the base rate at most. Riders were matched with the lowest fare.

A new California state law requires more companies to convert their contract workers to employees, providing them with benefits and protections. The conversion will give drivers more control and support for the argument that they are contractors rather than employees.