Uber surge pricing overcharges Sydney commuters during train shutdown

Uber's surge pricing system increased prices "exorbitantly" during disruptions to Sydney's rail and public transport system, prompting a fierce backlash from commuters and politicians. Commuters reacted with anger and frustration to Uber's surge pricing during the train shutdown, with many expressing their dissatisfaction on social media, criticising Uber for taking advantage of the situation. Reports indicated that some fares skyrocketed to over AUD 300 for short trips, which typically cost around AUD 20, leading to widespread outrage among those left stranded without public transport options. Transport Minister David Elliott condemned Uber's pricing strategy, describing it as "disgusting" and an exploitation of commuters in distress. The New South Wales government intervened, reaching an agreement with Uber to cap surge pricing during such outages. The initiative aims to prevent exorbitant fares that commuters experienced during a major train shutdown in March, where some fares skyrocketed to hundreds of dollars for short trips. In response to these incidents, Uber committed to monitoring the transport network continuously and notifying drivers of disruptions to better manage demand. The deal allows for some surge pricing to incentivise drivers, but will be limited to approximately double the regular fare. The situation prompted Uber to apologise and promise refunds to customers charged excessive fares during the outages. New South Wales Premier Dominic Perrottet also expressed regret over the chaos, suggesting a fare-free day to compensate frustrated commuters. Dynamic pricing Dynamic pricing, also referred to as surge pricing, demand pricing, or time-based pricing, and variable pricing is a revenue management pricing strategy in which businesses set flexible prices for products or services based on current market demands. Source: Wikipedia 🔗 ➕ June 2023. The New South Wales government brokered an agreement with Uber to cap surge pricing when chaos strikes the transport network . System 🤖 Uber surge pricing Operator: Developer: Uber Country: Australia Sector: Transport/logistics Purpose: Calculate price Technology: Pricing algorithm Issue: Ethics /values; Fairness

Date it happened

2023-03-01

Organisation involved

Uber

Product, system or model

Uber surge pricing

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