Uber under fire for ‘surge pricing’ during Sydney hostage drama

Car-sharing technology company Uber has been criticized on social media for its implementation of “surge pricing” during the Sydney hostage crisis. A criminal held hostages inside a Lindt Chocolate Café in Sydney’s central business district, prompting the area’s occupants to evacuate. This registered as an increase in demand for Uber’s services, and the company’s algorithm automatically implemented the rate increase. Users saw an increase of four times the usual rate. Cab rides that typically cost 25 Australian dollars increased in price to 100.

Furious criticism on social media followed. The company said that the surge pricing helps to generate more drivers to meet the increased demand. The implementation of surge pricing was done by a computer, but when company managers saw the apparent lack of social concern, the price increase was canceled. Later on, Uber said that they will refund fares to passengers who used their service to leave the district during the emergency.

Uber’s public image has been challenged lately, after allegations of rape by an Uber driver in New Delhi, casting doubt on the company’s claim that it conducts adequate background checks on its drivers.