Uber prices jumped in the Sydney Central Business District on Monday as people tried to flee the scene of a hostage crisis, leading to heavy criticism of the company on social media.
The company's minimum fare out of Martin Place hit $100, four times the normal $25 minimum, Mashable reported.
Uber said it would still compensate drivers based on its "surge pricing" model, but that users of the service would get one free ride out of the area. Those who paid would also get refunds, the company said.
In a statement, the company explained that "surge pricing is used to encourage more drivers to come online and pick up passengers from the area."
On Twitter, Uber said the surge pricing model is automated, based on demand. Once the company realized what was happening, it took action to correct it.
The company's minimum fare out of Martin Place hit $100, four times the normal $25 minimum, Mashable reported.
Uber said it would still compensate drivers based on its "surge pricing" model, but that users of the service would get one free ride out of the area. Those who paid would also get refunds, the company said.
In a statement, the company explained that "surge pricing is used to encourage more drivers to come online and pick up passengers from the area."
On Twitter, Uber said the surge pricing model is automated, based on demand. Once the company realized what was happening, it took action to correct it.
@Mr_Odin @JonnyPut surge pricing is automated. When we became aware of the situation we capped surge pricing and made rides free for riders.
— Uber Sydney (@Uber_Sydney) December 15, 2014