Uber issues apology after Sydney criticism
Uber issued an official apology Tuesday following criticism that it surged prices for customers last week who were attempting to leave an area of Sydney, Australia, during a hostage situation.
As an armed man took 17 people hostage in a downtown cafe in the city, the mobile taxi service began surging prices, it said, in order to get more drivers into the area.
{mosads}After immediate backlash, Uber quickly tweeted that all rides out of the area would be free and people would be refunded.
“We didn’t stop surge pricing immediately,” the company wrote in a blog post. “This was the wrong decision. We quickly reversed course and provided free rides to people needing to leave the CBD [central business district].”
“In the end, no rider was charged to leave the CBD on Monday and all higher fares resulting from surge pricing earlier in the day were fully refunded.”
Some reports noted the prices initially shot up nearly four times their normal levels in the early stages of the 16-hour crisis, which eventually ended with the death of two hostages and the gunman.
The company noted that surge pricing automatically takes effect through an algorithm that increases prices when demand for rides outstrips the number of cars in an area.
“Uber is committed to ensuring users have a reliable ride when they need it most — including and especially during disasters and relevant states of emergency,” according to the post.
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