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Uber Blasted for 'Surge Pricing' During Sydney Crisis

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Police escort a hostage (man second from right) from scene of siege in Sydney's central business district. (William West/AFP-Getty Images)

San Francisco-based ride service Uber quadrupled fares during Monday's hostage crisis in the central business district of Sydney, Australia -- then quickly reversed course after widespread criticism for imposing "surge pricing" during a public emergency.

As the crisis unfolded, Uber's Sydney branch tweeted that "we are all concerned with events in CBD. Fares have increased to encourage more drivers to come online and pick up passengers in the area."

Technology news website Mashable reported that Uber was briefly charging customers a minimum fare of 100 Australian dollars (US$82) and four times the usual per-mile rate to leave the city center. Uber's smartphone app included a cheerful note: "Demand is off the charts!"

Screenshot of the Uber app for Sydney customers. (Mashable)
Screenshot of the Uber app for Sydney customers. (Mashable)

But Uber backtracked after an outcry on social media.

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"you are horrible. Taking advantage of a situation to make a buck. If u were the only way home, I'D WALK!" wrote one person on Twitter under the hashtag #ubersydney.

The company said on its Sydney blog that it was in the process of giving refunds to those who had already paid the excessive fares and was giving free rides to others wanting to leave the central business district. The company also suggested that to encourage drivers to go to the district, it was still charging higher rates in other parts of Sydney.

This post contains reporting from the Associated Press.

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