Sydney siege sees Uber raise prices before backtracking
Uber has faced a string of negative stories in recent months 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 is holding staff and customers hostage, Uber's pricing algorithm responded to a surge in demand by raising prices.Uber has responded to the criticism by offering free journeys out of the city's central business district (CBD).
It has 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".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."