Uber was offering refunds to riders in Sydney, Australia after the personal taxi service charged customers up to four times its normal rate to leave the area where a hostage situation was unfolding.
Authorities on Monday warned the public to stay away from Sydney’s central business district and evacuated buildings there after a gunman took an unknown number of hostages inside a Lindt Chocolat Cafe. Mashable reported that some Uber users trying to leave that area saw surge pricing was in effect at four times the service’s normal rate, with a minimum fare of AU$100, or $82.
We are all concerned with events in CBD. Fares have increased to encourage more drivers to come online & pick up passengers in the area.
— Uber Sydney (@Uber_Sydney) December 15, 2014
Uber employs price surging when demand for the service is high — on New Year’s Eve, for example — so that more drivers are motivated to get on the road and pick up passengers.
The company quickly reversed course Monday after receiving backlash on social media.
Uber rides out of the CBD today are free for all riders to help Sydneysiders get home safely. See http://t.co/UIwoom25Bm for more info.
— Uber Sydney (@Uber_Sydney) December 15, 2014
Uber said it was “concerned with the events happening in Sydney” and would refund those customers who were charged the higher rates.
