Whenever there is an international crisis, there often comes both opportunity and potentially commercial shame. Unfortunately, the hostage situation in Sydney was no exception and first in the spotlight was taxi brokerage company, Uber, which has been slated for their introduction of surge pricing…
At 10pm on Sunday 14th December (GMT) / 9.45am on Monday in Australia, police were called to the Central Business District where a potential hostage situation was unfolding in the Lindt Chocolat Café. The crisis in Sydney’s Martin Place involved a gunman wearing a bandana and holding an unknown number of customers hostage. It transpired the gunman, Man Haron Monis from Iran, had been given asylum in Australia, but is currently on bail for other crimes; he communicated with police to an extent and advised not only guns, but also potentially a bomb, present in a densely populated area.
Now, rightly or wrongly, at this point, taxi firm Uber, which brokers bookings between potential customers and drivers, introduced surge-pricing for trips from the area; the fares, which usually cost dollars, rose in price to quotes of $100-$200 to flee the scene. And this is where the problems start…
Technically speaking, with any form of disaster, the free market economic rules suggest that supply is likely to dwindle and demand will rocket, pushing up prices; many would argue this is simply what happened with Uber, particularly as public transport was halted and taxi drivers began to avoid the area. Fair enough we say, they’re responding to the market forces; perhaps a little unethical given the situation, but arguably natural. Unfortunately however, Uber decided not to keep their mouth shut and in fact, openly expressed their reasoning; just not very well…
Whether you agree with it or not, some PR, particularly crisis PR, is all about the ‘spin’. It’s about how you deliver the bad news; the way you express your concerns; how you say sorry. Issues are not black and white, but have many shades of grey – many people involved in making the decisions, many businesses involved in making something happen, many people at fault. On this basis, when it comes to Sydney or other disasters, Uber to an extent have their hands tied, because they don’t directly employ the drivers, they broker the deals; if they offer discounts or promotions, they have to honour it and it comes off their bottom line, not off the taxi drivers’ fares. Is inflating the prices therefore inherently a bad thing?
When a crisis happens, Uber introduce surge pricing (which makes sense when you think about it), however they never quite handle it well enough to get them through. In Sydney, they effectively stated that the increased prices were for the good of the customers; in Hurricane Sandy, the backlash led to a National Policy, pushed by New York’s attorney general. Now in a case like this, what they should have done was identify a comprehensive policy and be open and honest about it. Advise that fares will cost more due to the risk to drivers, but perhaps suggest Uber will split the difference between the standard and inflated fares. Alternatively, they could establish a support network and use the opportunity for positive exposure, negotiating deals for drivers to enter the area and help those fleeing, absolutely free – it would have been well-handled, fully costed and most of all, would have cost a heck of a lot less than the resulting apology, refunds, free fares and brand damage that they face now.
It’s the grotty, overall feeling of the ‘get rich quick’ mentality that leaves most questioning the integrity of Uber, and yet a little forethought and a bit of planning could have seen them awarded a gold star for support and heroism. If ever you find yourself facing a disaster, or a particular situation that provides an opportunity, you have the right to react to it and make the most of it. You won’t necessarily be slated for it. Hopefully, you won’t be someone out looking to make a quick buck, but if you do elect to grasp an opportunity, stop, take a minute to assess how you might come across, and whether there is a way you can benefit all, without being a money-grabbing idiot!