  Amid Sydney Siege, Uber Reverses Course on Higher Fares - Digits - WSJ  Amid Sydney Siege, Uber Reverses Course on Higher Fares - Digits - WSJ








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                2:53 am  ETDec 15, 2014        

Asia 

          Amid Sydney Siege, Uber Reverses Course on Higher Fares        






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AsiaAustraliaRide Sharingtaxi appsUber 

















By  Newley Purnell



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A screenshot of the Uber app in Sydney, 15 December 2014.
Uber screenshot


Uber acted quickly Monday in an attempt to tamp down the latest controversy to hit the company, saying it is offering passengers free rides amid an unfolding siege at a Sydney café after complaints that rates had soared to exorbitant levels.
The reversal came just a short time after the ride-sharing app drew criticism on Twitter for saying it was raising prices to attract more drivers to the city’s central business district, where at least one gunman had taken hostages in a cafe and placed an Islamic flag in the window, sparking concerns a terrorist attack was under way.
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
The fare uptick was the result of an Uber policy called surge pricing, in which an algorithm charges customers more money during times of high demand — as was apparently the case in Sydney. Some users reported that the minimum fare had skyrocketed to $100 Australian dollars ($82) for a ride.
“What a shameful disgrace,” wrote one Twitter user. “Fares have increased out of concern? Really?” wrote another. One Twitter user wrote simply, “Your business model is vile,” while others branded it a “PR fail.” In response, Uber, which launched in Sydney in 2012, Tweeted about 40 minutes later that trips out of the downtown area would be free for riders.
Uber Sydney trips from CBD will be free for riders. Higher rates are still in place to encourage drivers to get into the CBD.
— Uber Sydney (@Uber_Sydney) December 15, 2014
In response, Uber, which launched in Sydney in 2012, tweeted about 40 minutes later that trips out of the downtown area would be free for riders.
An Uber spokeswoman told The Wall Street Journal when contacted Monday that the surge in pricing had gone into effect automatically, but that “as soon as we became aware of the situation, we capped it and made all rides free to people leaving Sydney’s CBD.” Uber will refund those who paid elevated prices, she said, and is paying for the free rides.
Uber said the company has a policy that limits rates during emergencies and natural disasters, based on its U.S. guidelines. Uber “capped the surge” once it “became aware that it was automatically surging above our rates for emergencies,” the spokeswoman said.
San Francisco-based Uber has been marred by waves of negative developments in recent months, with governments around the world questioning the company’s legality and critics saying Uber believes it should operate by a different set of rules. Earlier this month allegations that an Uber driver raped a woman in India triggered a nationwide ban on smartphone-enabled taxi services.
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