Uber, Lyft called out for surge pricing after NYC subway shooting

Uber and Lyft experienced a furious backlash for implementing surge pricing following a mass shooting on a Brooklyn subway, in which 10 people were injured. Customers reported prices nearly 10 times the normal rate, with one customer shared an image of a standard Uber ride costing over USD 68 in the area, and another reporting a USD 85 ride, claiming it was a 10x increase from the usual fare. Many people complained publicly the companies were exploiting a vulnerable situation by charging highly inflated fares during a time of crisis. In response to public outrage and complaints, both companies announced they would suspend surge pricing in New York City. Lyft also announced plans to offer discounted rides to help ensure transportation remains accessible during the crisis. The incident was not the first time the two companies have been criticised for surge pricing during emergencies; both have previously faced backlash for similar practices during high-profile events, such as a hostage situation in Sydney and an explosion in Manhattan. 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 🔗 System 🤖 Uber surge pricing Lyft surge pricing Operator: Uber users, Lyft us ers Developer: Uber; Lyft Country: USA Sector: Transport/logistics Purpose: Calculate price Technology: Pricing algorithm Issue: Ethics/values; Fairness

Date it happened

2022-04-01

Organisation involved

Uber

Product, system or model

Uber surge pricing

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