[robrenaud]

Uber tried to use surge pricing in the aftermath of Sandy in NYC, and was basically forced to pay the drivers the extra surge prices out of their own pockets due to the PR fiasco that ensued.

http://blog.uber.com/2012/11/01/hurricane-sandy-pricing-upda...

Of course, this was only the aftermath. I am very skeptical that for hire taxis are a good way of saving lives in an emergency.

I personally totally buy the economic argument for surge pricing. But they have a very PR problem of convincing people that it's useful and beneficial to everyone.