Occurred: June 2017
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Uber faced significant backlash for maintaining surge pricing during the London terror attack on June 3, 2017, which resulted in seven deaths and numerous injuries.ย
Uber users reported being charged up to 200 percent more than usual while trying to escape the chaos after a van had struck pedestrians on London Bridge and terrorists wielded knives nearby. Critics on social media accused Uber of profiting from the tragedy, with fares reportedly rising from around GBP 7 to 40 for short trips.
Despite the criticism, Uber's general manager in London, Tom Elvidge, defended the company's actions, stating that they suspended surge pricing in the attack area shortly after being informed of the incident, and extended this suspension to all of central London within an hour.ย
Surge pricing typically increases fares when demand exceeds supply, but Uber usually disables this feature during emergencies. The company later refunded affected passengers and emphasised its support for those impacted by the attack.
The incident sparked discussions about the ethical implications of dynamic pricing algorithms, particularly during crises, and highlighted Uber's ongoing challenges with public perception and competition from traditional taxi services, which offered free rides to those fleeing the area.
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.ย
Source: Wikipedia ๐
Operator:
Developer: Uber
Country: UK
Sector: Transport/logistics
Purpose: Calculate surge price
Technology: Pricing algorithm
Issue: Business model; Fairness
https://money.cnn.com/2017/06/04/technology/uber-london-attack-surge-pricing/
https://www.wtkr.com/news/photos-uber-criticized-for-surge-pricing-after-london-terror-attack
https://www.uber.com/gb/en/drive/driver-app/how-surge-works/
https://www.businessinsider.com/uber-refunds-customers-surge-pricing-london-terror-attack-2017-6
Page info
Type: Incident
Published: August 2024