Uber faced a backlash for implementing surge pricing that raised fares more than four times the usual rate during a hostage crisis in Sydney, Australia. 

The pricing strategy was triggered by a spike in demand as people attempted to flee central Sydney, which was under lockdown due to an armed assailant holding hostages in a cafe.

The surge pricing drew widespread criticism on social media, with many accusing Uber of exploiting the crisis for profit. 

In response, Uber reversed its decision, offering free rides for passengers trying to leave the central business district and pledging to refund people who had been charged the higher fares. 

Uber later issued an apology, acknowledging that their communication regarding the surge pricing was poorly handled and that the decision to raise prices had been wrong. 

The company argued that their aim was to encourage more drivers to come online during the high-demand situation but that it had been "misinterpreted" as price gouging.

Following the incident, Uber committed to developing a policy to cap prices during emergencies to prevent similar situations in the future.