The ridesharing service’s contentious surge-pricing strategy pushed Uber to the BBB's lowest rating.
Surge pricing drove Uber to an “F” rating by the Better Business Bureau.
According to The New York Times, Uber, an on-demand car service app, received the low rating based on nearly 100 customer complaints in the past three years, most regarding surge pricing, as well as other issues.
“Some consumers claim that they were told the final cost of the transportation service the company provided (through Uber Technologies’ phone app, the driver, and the consumer’s receipt), only to be subsequently charged a substantially larger amount,” the BBB said.
According to the Uber website, surge pricing is all about supply and demand:
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.
Uber, which operates in 119 American cities, as well as countries around the world, said if surge pricing leads to rates that are more than double the normal rate, “the surge confirmation screen also requires you to type in the specific surge multiplier to ensure you understand what rates to expect.”
The Taxicab, Limousine & Paratransit Association, the world’s largest taxicab trade group, recently sent out a press release about Uber’s “F” rating, Bloomberg said. It’s interesting, considering many big taxi companies also share failing grades from the BBB. According to Bloomberg:
In San Francisco, Yellow Cab Cooperative has an F, and Peninsula Yellow Cab in Silicon Valley does, too. The Yellow Cab Company in Los Angeles also has an F. Yellow Cab Company of Chicago? F.
The Times also noted that Lyft, Uber’s biggest competitor in the on-demand car service arena, also received an “F” by the BBB.
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