Uber users getting stung by 'surge' pricing

Heather Skinner was charged $110 more than she was expecting to pay for a ride in an Uber taxi. Photo / Jason Oxenham.

Ride home cost $139 instead of $40 after company applies dynamic pricing policy of higher rates.

Uber is under fire for its "dynamic pricing" policy which some users say has left them out of pocket.

The taxi service arrived in New Zealand in May 2014, offering customers cheaper fares than traditional taxis and potentially greater convenience for patrons. About 1500 drivers have been hired here.

Heather Skinner had been at a Christmas work function at the Billfish Cafe in Westhaven last month and decided she would give Uber a go.

About 11pm she requested a ride through Uber's smartphone app, and was under the impression it would cost about $40 to get home to Kaurilands Rd in Titirangi.

But she was unaware that the company's so-called dynamic, or "surge", pricing policy was in effect, meaning higher rates applied.

"It wasn't until I got the bill after I got home that I realised I'd just been charged $139," Skinner said. "I've never paid more than probably $70 for a taxi out to Titirangi..."

Dynamic pricing comes into effect when demand for drivers outstrips supply, and acts as an incentive for more drivers to stay on the road.

Skinner said the only indication she received that there may have been an additional charge was when "3-3" flashed up on her phone as she booked the ride.

"That means they're going to charge you three times the amount, but they don't make that clear.

"You try something for the first time thinking you're going to get a good deal and then to be charged three times what a normal taxi fare is. That's insane."

Another Uber customer complained on Facebook that the policy left her feeling "robbed".

Uber spokesman Caspar Nixon said customers received several warnings when dynamic pricing was in place.

"[Customers] are first of all shown before they actually make the request how much it is - whether it's 1.5, 1.8 or 2.2 times the normal amount. If they then hit the 'request a ride' button they are then required to manually input the exact surcharge amount.

"They're also able to get a fare estimate with the surge price included. It's a fully transparent process."

He said the company would not be reviewing the policy at this stage.

Uber refunded Skinner $34.

Consumer New Zealand said it had not received any complaints about the company's pricing policy.

Jessica Wilson, a researcher for the organisation, said the best thing to do was to ask the driver about cost before getting into an Uber car.