UBER Stock in Focus Following New York Surge Pricing Complaints. What to Know.

Uber Technologies (NYSE:UBER) stock is in the spotlight Wednesday after commuters in New York complained about its surge pricing yesterday.

A photo of an Uber placard in the window of a car on a city street.
Source: Shutterstock

Surge pricing occurs when there’s heavy demand for Uber rides in an area. This results in major increases in price. It’s a normal part of the company’s business and is likely triggered by artificial intelligence, rather than a human decision.

Even so, residents of New York aren’t happy as surge pricing went into effect yesterday after the subway shooting that injured at least 29 people. This saw commuters attempting to flee the area facing increased fare fees for an Uber.

Uber did limit surge pricing once the cause was made known to it, but only in Brooklyn, which is the area the shooting took place in. It continued to keep surge pricing in effect in neighboring areas but did put a cap on it, reports New York Post.

Now Uber is seeking to right that surge pricing mistake with refunds. Here’s what spokeswoman Freddi Goldstein told NBC New York.

“As always, Uber strives to be a resource for New Yorkers aiming to get around New York City. If anyone on our platform experienced unintended charges during this emergency, we will work to get them refunded.”

Uber rival Lyft (NASDAQ:LYFT) also caught flak over surge pricing following the shooting. However, the company quickly suspended surge pricing across all of New York City shortly after the attack. It’s also handing out partial refunds over the error.

UBER stock is up 2.6% as of Wednesday morning.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/04/uber-stock-in-focus-following-new-york-surge-pricing-complaints-what-to-know/.

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