Uber defends itself against criticism it raised prices in Manhattan after New York City bombing

The company said it immediately switched off ‘surge pricing’ and refunded customers in the wake of the terrorist scare

Uber employs 'surge pricing' during periods of high demand (Getty)

Cheap ride service Uber said it immediately cancelled its higher prices after the Chelsea bombing in Manhattan this weekend following criticism for its “price gouging” policy.

Following several angry complaints on social media, Uber, which normally employs “surge pricing” during periods of high demand, said it had turned off the feature in the wake of a bomb in Chelsea which injured 29 people.

The bomb took place around 8.30pm.

Around midnight on Saturday customers took to twitter to vent their frustration at the service.

One person said their usual ride home of $11 had surged to $32 after the explosion of a home-made bomb placed in a rubbish bin on West 23rd Street.

Another user said he was “disgusted” as people were just trying “to get home safe”.

Yet Uber tweeted that it had turned off the function allowing higher prices shortly after the explosion, before 10pm.

It remains unclear whether the customers’ complaints had been posted late or if they were misinformed, as reported by Fortune.

Uber said in another posting that customers could have been overcharged in error, and was working to refund customers.

In 2014 the company landed in hot water for raising prices during a fatal hostage episode in Sydney, Australia. Uber said it was “truly sorry” for the incident.

The same year, New York’s attorney general, Eric Schneiderman, announced an agreement whereby Uber would conform with a state law which restricts surge pricing during emergencies and natural disasters.

Uber drivers protested in New York in February after the company slashed prices by 15 per cent during a quiet period.