Minicab hailing app firm Bolt has announced it will allow drivers to set their own prices.
The company said it is introducing the measure in an attempt to tackle driver shortages which have led to longer wait times and increased cancellations across the sector in the UK.
Drivers often accept journey requests but then reject them after receiving more profitable options, according to Bolt.
This leads to a “poor experience for customers”, the Estonian start-up said.
The ability for drivers to choose their own prices will be tested in several UK cities from this week ahead of a planned rollout across the country before Christmas.
Drivers will be able to select their prices within a range, or use Bolt’s standard pricing which varies based on supply and demand.
A feature allowing passengers to select their driver from a list is also being introduced.
Sam Raciti, Bolt’s manager for western Europe, said: “Drivers have consistently asked us for the ability to set their own prices so they can ensure a journey is profitable enough before it’s accepted.
“By making these changes we hope to reduce waiting times on the Bolt app and have fewer driver cancellations so customers can get to their destination quickly and safely following increased demand in recent weeks.
“We have built our business around giving drivers total flexibility.
“These changes are part of that philosophy and will create a better functioning marketplace.”
Rival firm Uber increased its prices in London by 10% last week in an attempt to attract more drivers.
Bolt said it has “grown rapidly” in the UK since launching in London in 2019, due to having commission rates which are lower than those charged by other companies.
It added that it has more than 65,000 drivers and four million customers across 14 English cities.