Uber blasted for “ridiculous” Christmas price surges
Various reports from around the globe are slamming Uber today, as customers experience seemingly over-the-top Christmas price surges. However, Uber remains defiant, stating that customers can and should check prices before confirming a booking. As previously reported, Uber uses surge pricing when its algorithm detects high demand within an area. Temporary price hikes are supposed to tempt more drivers into the area and also encourage passengers to wait until demand subsides. However, such surges are clearly more prevalent this time of year, with reports coming in from as far afield as Melbourne and Delhi of disgruntled customers paying up to 250% over their usual fare price.

A driver said surge pricing is simply a way to drive up Uber's profits

Others claim they were not notified before the surge price was applied

Uber users and drivers are calling out the ride-sharing app for its 'ridiculous' surge pricing model which can see consumers fork out more than four times the normal rate in 'busy' periods.

But the company has hit back saying its customers can check for price hikes or get a fare estimate before they book a car.

Sarah Holmes, 30, from Melbourne said she is boycotting the company after she claimed that she had been charged $25 for a three kilometre trip that usually costs her $8 due to 'surge pricing'.

'If I'd have known it was going to be that much I would have just got a taxi,' Ms Holmes said.

'I haven't said that in a very long time but in the last couple of weeks I have noticed that Uber is getting ridiculously priced so I will be heading back to cab land,' she added.

But Ms Holmes had booked a premium UberBLACK service, which comes with a minimum fee of $25 per journey.

Scroll down for video

Sarah Holmes, from Melbourne, said she and her friends have decided to boycott Uber after she was charged $25 to go three kilometres down the road after using a premium UberBLACK service

Uber users and drivers alike are calling out the ride-sharing app for its 'ridiculous' surge pricing model which can see consumers fork out more than four times the normal rate in 'busy' periods

An Uber spokesperson told Daily Mail Australia that users could easily avoid bill shock when using the service.

'There are two ways a rider can check what the fare structure is for different types of Uber services - they can either check out the fare tables on our website or get a fare estimate within the app before getting a ride,' they said.

Ms Holmes, a back to work specialist, said her experience was not the first time she was dissatisfied after checking her Uber receipt.

'The other morning I got an Uber from Hawthorne to the city which is less than 8 kilometres and it cost me $46 because it was allegedly in peak hour,' she told Daily Mail Australia.

'It was about nine or ten in the morning on a Saturday – that is not peak hour.'

Ms Holmes said the trip would have cost her $8 under normal circumstances but because it was surging in her area and her fare was less than $25 however she was using the premium UberBLACK service which has a minimum charge of $25 per journey

'The other morning I got an Uber from Hawthorne to the city which is less than 8 kilometres and it cost me $46 because it was allegedly in peak hour,' she told Daily Mail Australia

Uber says customers check for price hikes or get an estimate on a service before they book

Ms Holmes claims she did not receive a notification that her fare was surging and only learnt that she had paid the higher fee after checking her email.

'I got no notification, I just got the aftermath. It was three times the normal rate which is absurd.'

Once a loyal Uber user, Ms Holmes said the app had initially marketed itself as a cheaper product but had abandoned its initial pricing scheme after finding success with its cult following.

'Uber sucked people in by giving them discounts for singing up their friends and offering cheaper fares but that has all gone to waste now they are expecting people to pay triple.'

Georgie Brousil was livid when she found out her regular fare from Melbourne's CBD to Seaford had cost her a whopping $157.30 more than usual thanks to surge pricing.

'It has never cost me that much money, it has always been around $100 to $120,' Miss Brousil told The Age.

'For $260 I could have stayed in a hotel for the night. I can even get flights to Queensland for that.'

She too denies that she was prompted to accept a higher price by Uber when booking the ride, stating that there is 'no way' she would have continued the booking if she were told the fare would be 2.7 the normal price.

Georgie Brousil was livid when she found out her regular fare from Melbourne's CBD to Seaford had cost her a whopping $157.30 more than usual thanks to surge pricing

'For $260 I could have stayed in a hotel for the night. I can even get flights to Queensland for that,' she said

Paul Vitale, from Cronulla, in Sydney's south, claims he was also charged a 1.7 surge price without receiving any notification from the ride-sharing app, driving his fare up to $112.56 from $66.21

'I would have caught a taxi instead. There were heaps of taxis around, but Uber is supposed to be cheaper,' she said.

Paul Vitale, from Cronulla, in Sydney's south, claims he was also charged a 1.7 surge price without receiving any notification from the ride-sharing app, driving his fare up to $112.56 from $66.21.

Despite some users alleging that they were not notified before the app applied surge pricing, Uber said consumers receive warning before hand and must confirm the price before continuing.

Uber claim that surge pricing is designed to 'get more driver's on the road', however Uber driver Paul Conway, 26, claims the ride-sharing app is simply trying to drive up profit. .

'Uber have changed, they used to be 'for the people' now they are just in it for themselves,' he told Daily Mail Australia.

'They created a cheap market to get everyone on board and now they are going to charge you a ridiculous amount.'

Mr Conway is adamant surge pricing does not encourage more drivers on the road and that drivers were only being notified if an area they frequented was surging as of Tuesday this week.

'I don't think [surge pricing] brings any more drivers on to the road and it discourages people from using it, who would want to pay three times more for the same service?'

Mr Conway said he has seen an increase in Uber pushing surge prices on to customers, even if there is not a high demand for drivers.

Uber claim that surge pricing is designed to 'get more driver's on the road', however Uber driver Paul Conway, 26, claims the ride-sharing app is simply trying to drive up profit.

He said drivers were only being notified if an area they frequented was surging as of Tuesday this week

He started to question how surge pricing was implemented after he went out in search of a fare while there was a surge, but had no luck.

'I saw there was a surge on and I thought I would surely get a fare if Uber's were in high demand but driving around for about 35-40 minutes and I hadn't had a single request.'

'It just doesn't make sense to me.'

The 26-year-old, who has been driving with Uber since June, said he has seen 'both sides' of the story and after a poor experience as a customer, he will also be using taxis from now on.

Last week Mr Conway was charged $45 for an eight kilometre trip from Elsternwick to Prahran.

The sometimes-Uber-driver been out drinking when he was offered a lift with a 3.1 surge.

Despite being warned of the increase in price, Mr Conway said he did not really think about how much the fare would add up to when he accepted.

'It did make me type it in and I knew it was surge pricing but I didn't think, I didn't do the maths and I couldn't belive it when I saw it was $45.'

'I have gotten to the airport for that price – it is just taking advantage.'

The 26-year-old, who has been driving with Uber since June, said he has seen 'both sides' of the story and after a poor experience as a customer, he will also be using taxis from now on

Last week Mr Conway was charged $45 for an eight kilometre trip from Elsternwick to Prahran

Despite being warned of the increase in price, Mr Conway said he did not really think about how much the fare would add up to when he accepted

He started to question how surge pricing was implemented after he went out in search of a fare while there was a surge, but had no luck

While Uber spruik transparency, Mr Conway said there was no way to keep track of how high your fare could surge to once agreeing to the exorbitant 'dynamic pricing'.

'People don't realise until its too late. If you are in a cab and things start to get a bit expensive you can jump out but with Uber you have no idea.'

He said the ride sharing app should be self-regulating to ensure their surge pricing doesn't go too far.

'Double surcharging means Uber is pretty much the same price as taxis but now I am seeing it as high as 4x which is just ridiculous.'

A spokesperson from Uber told The Age that consumers should expect surge pricing during the holiday period as the app was in high demand around Christmas and New Years.

'To help accommodate for this increase in demand, we actively encourage more driver-partners to get on the road over the festive period.'

'On the occasions when demand for rides outstrips the supply of cars on the road, dynamic pricing temporarily comes into effect to encourage more drivers to the areas where demand is highest.'=