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Posted: 2014-12-15 04:24:00
Uber is charging massive prices in Sydney to “encourage more drivers”.

Uber is charging massive prices in Sydney to “encourage more drivers”. Source: AP

TAXI service Uber is offering free rides to commuters looking to get out of the Sydney CBD as a hostage situation unfolds inside a cafe in Martin Place.

Earlier today the company received public criticism after the booking app showed a minimum of $65 for a fare out of Martin Place, 2.6 times the normal fare and even up to 4 times the fare it was earlier today before the events in the CBD unfolded, according to Mashable.

They are also now refunding customers who originally had to pay the surge fare.

MORE: Gunman holds hostages inside Sydney cafe

Off the charts!

2.6 times the normal fare. Source: NewsComAu

Ordinarily Uber takes a percentage of each fare booked through the company with ‘surge pricing’ part of Uber’s business model. ‘Surge pricing’ is when Uber increases fares to try to attract more drivers in peak times. Often customers will pay ’surge pricing’ of about 1.5 times to 2 times the normal fare on a busy Friday or Saturday night. It can get up to 3 times the normal price on nights such as New Year’s Eve.

However as a siege in Sydney continues Uber has announced that it will cover the cost of fares for customers wishing to leave the Sydney CBD while still paying drivers the increased surge fare in an effort to encourage them to pick up customers.

Uber operates by connecting riders to drivers through apps opening up more possibilities for riders and more business for drivers.

NSW Police have issued a warning to everyone in the Sydney CBD to stay inside and those outside of the city to avoid coming in.

News.com.au has contacted Uber for comment.

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