- Story By: businessinsider.com Oct. 9, 2014, 5:06 PM
Complaints About Uber Surge Pricing Caused The Better
Business Bureau To Give The Company An 'F'
- Oct. 9, 2014, 5:06 PM
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On Thursday, Uber received an
"F" grade from the Better Business Bureau, the New York Times reports. It's the lowest rating that the independent organization
assigns to businesses.
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Founded in 1912, the Better Business Bureau
is the nonprofit responsible for serving as the intermediary between consumers
and businesses, handling disputes and alerting the public to scams, among other
things.
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Most of the complaints on Uber's Better Business Bureau page for the San Francisco Bay Area come from customers
upset about the company's surge pricing practice. More than 90 customers, many of
whom feel misled about Uber's surge pricing policy, have left comments on the website. Surge pricing occurs when there's a high
demand for Uber cars — on holidays like New Year's Eve, during inclement
weather, or weekend nights, for example.
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There's been many stories of Uber customers upset when they receive the
receipt for their Uber ride taken during surge pricing, even though the company
warns users about this before you can even request a ride. From Uber's website:
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With surge pricing, Uber rates increase to get more cars on the road and
ensure reliability during the busiest times. When enough cars are on the road,
prices go back down to normal levels. It’s important to know that you’ll always
be notified in big, bold print if surge pricing is in effect. When rates
are more than double, the surge confirmation screen also requires you to type
in the specific surge multiplier to ensure you understand what rates to expect.
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This practice isn't exclusive to
Uber; rival Lyft has its own equivalent of surge pricing called Prime
Time, and as the New York Times rightly points out, Lyft has also
received an “F” from the Better Business Bureau, though with far fewer complaints. And Uber's
latest target, the taxi industry, doesn't have a great record
either; according to the Bay Citizen, more than 1,700
passenger complaints were made about Bay Area taxis between July 1, 2011
and June 30, 2012.
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Uber provided Business Insider with
this statement: "Uber has revolutionized riders’ ability to provide
feedback in cities like San Francisco where consumers filed nearly
2000 unanswered complaints against taxi in one year alone. Uber’s direct
channel for two-way feedback is regularly reviewed and acted on to ensure a
high-quality experience. The fact is that consumers in 220 cities around the
world have made their opinion known by taking millions of rides with
Uber."
Read more: http://www.businessinsider.com/uber-gets-an-f-from-better-business-bureau-2014-10#ixzz3GMhL4i3E