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Sydney siege sees Uber raise prices before backtracking | Sydney siege sees Uber raise prices before backtracking |
(about 5 hours later) | |
Cab-ordering firm Uber has been criticised for increasing fares by up to four times normal rates during the hostage crisis in Sydney, Australia. | Cab-ordering firm Uber has been criticised for increasing fares by up to four times normal rates during the hostage crisis in Sydney, Australia. |
As the police cordoned off a wide area around the Lindt cafe where a gunman was holding staff and customers hostage, Uber's pricing algorithm raised prices as demand spiked. | |
Uber responded to the criticism by offering free journeys out of the city's central business district (CBD). | |
It also refunded some passengers. | |
But the rapidly expanding cab firm also tweeted that higher rates were still in place "to encourage drivers to get into the CBD". | But the rapidly expanding cab firm also tweeted that higher rates were still in place "to encourage drivers to get into the CBD". |
In a blogpost on Sunday, Uber explained that "surge pricing is used to encourage more drivers to come online and pick up passengers from the area." | In a blogpost on Sunday, Uber explained that "surge pricing is used to encourage more drivers to come online and pick up passengers from the area." |
Twitter users had accused the firm of exploiting a potential terrorist situation for its own financial gain. | Twitter users had accused the firm of exploiting a potential terrorist situation for its own financial gain. |
Minimum fares rose to A$100 (£53) at one point with one customer telling tech news site Mashable he'd been quoted A$145-185 for a journey from Sydney's CBD to the airport - a 13-mile journey that would normally cost about A$40-70 depending on the time of day. | Minimum fares rose to A$100 (£53) at one point with one customer telling tech news site Mashable he'd been quoted A$145-185 for a journey from Sydney's CBD to the airport - a 13-mile journey that would normally cost about A$40-70 depending on the time of day. |
Another customer said this was "almost price gouging at its worst". | Another customer said this was "almost price gouging at its worst". |
Uber backlash | Uber backlash |
This is the latest in a run of negative news stories for Uber. | This is the latest in a run of negative news stories for Uber. |
Taxi drivers in France have been blocking some roads around Paris and at airports in a protest against the firm. | Taxi drivers in France have been blocking some roads around Paris and at airports in a protest against the firm. |
Monday's demonstration came as France's Interior Ministry said it would ban UberPop, the company's car-pooling service, from 1 January. | Monday's demonstration came as France's Interior Ministry said it would ban UberPop, the company's car-pooling service, from 1 January. |
And last week, Uber said it would suspend operations in Delhi, India, following the arrest of an Uber driver accused of raping a female passenger. | And last week, Uber said it would suspend operations in Delhi, India, following the arrest of an Uber driver accused of raping a female passenger. |
In response, the Delhi authorities banned all internet-based cab services. | In response, the Delhi authorities banned all internet-based cab services. |
Uber apologised for what happened and acknowledged that it "must do better". | Uber apologised for what happened and acknowledged that it "must do better". |
There have also been taxi protests in other cities around the world with various governments threatening to legislate against the firm. | There have also been taxi protests in other cities around the world with various governments threatening to legislate against the firm. |
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