Monday, June 5, 2017

Uber criticized for surge pricing after London terrorist attack

Automation can be a relief for time-strapped executives and communicators—but sometimes, it can land you in reputational hot water.

Uber is being criticized for its surge pricing in the wake of a terrorist attack in London on Saturday night. At least seven people were killed in the attacks, which took place on London Bridge and in Borough Market. Forty-eight people were injured.

Angry social media users turned to Twitter to complain about the pricing, with some pointing out that taxis in the area had lowered or removed fares:

Though Uber didn’t intentionally set the surge pricing—it works on an automated algorithm—the ride-hailing service was heavily criticized for its reaction time in the wake of the attack.

CNN reported:

Uber fares are calculated using an algorithm that reacts to demand. The controversial pricing model, which is designed to lure drivers to areas where demand is high, is typically suspended during disasters and emergencies.

But the company has been criticized for not acting quickly enough.

On Saturday, the first calls to emergency services in London were made at 10:08 p.m. Uber said it had disabled surge pricing in the immediate area of the attack by 10:50 p.m. and extended the suspension to include all of central London by 11:40 p.m.

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Shortly following the move to disable surge pricing, Tom Elvidge, general manager of Uber in London, posted the following statement on the company’s blog:

Our hearts go out to everybody affected by yet another horrific attack on our city. We’d like to thank all the drivers who helped tens of thousands of Londoners get home safely last night. As soon as we heard about the incident we immediately suspended dynamic pricing all around the area of the attacks – and shortly afterwards across the whole of central London – just as we did following the attacks in Manchester and Westminster. We are also ensuring all rides from around the affected area were free of charge. Our team is also working with the Metropolitan Police to help them get any footage from drivers who were in the area at the time.

Uber’s social media team in the United Kingdom also responded to critics and pointed them to Elvidge’s statement:

Uber also told news outlets that the app will automatically refund those affected by the surge pricing.

BBC reported:

Uber says that people who used the app in the surrounding area of London Bridge on Saturday night should have already been automatically refunded.

If they have not been refunded, they should contact customer services.

Uber UK also announced that it’s matching and donating the total amount of fares to and from #OneLoveManchester, a benefit concert that raised money for the victims of a terrorist attack at an Ariana Grande concert in Manchester, England, on May 22. Twenty-three people were killed in the explosion at the arena, and 119 people were injured.

The benefit concert raised $2.6 million within three hours .

Uber UK’s response—and its goodwill effort to contribute to #OneLoveManchester—didn’t stop consumers from lashing out against the company’s reaction time, however. Uber’s overall reputation, which includes the company’s chief executive’s concession that he needs leadership help, also doesn’t help the brand’s image when crises hit.

The Independent reported:

A fierce rivalry has swelled between Uber drivers and London black cab drivers in recent months, with the latter accusing Uber of distorting competition unfairly. Many were using the social media hashtag #deleteuber on Sunday.

The backlash also highlights a lesson to PR pros in the age of growing technological advancements: If you automate your services or communications (including scheduling social media posts), be prepared to scan the horizon continually for crises so you can respond swiftly.

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