This post was updated at 10:45 p.m. ET to include an updated statement from Uber.

Uber briefly charged its users in downtown Sydney a minimum $100 to escape an armed hostage crisis, a result of automatic surge pricing meant to get more drivers online.

An executive in the city's Central Business District (CBD) sent Mashable screenshots of the Uber app that showed the company was charging up to four-times the normal rate because "demand is off the charts."

Price surging was implemented in Sydney, Australia on Dec. 15th, 2014, during a hostage siege in the CBD. Image: Mashable

"I have never, ever seen it at four-times [the normal rate] and I'm a 1% top Uber user," said Matthew Leung, the user in contact with Mashable. "I understand the way the business works — higher the demand, higher the charge — but four-times at $100 minimum is ridiculous. Almost price gouging at its worst."

Another customer shared a screenshot of their "wack" fare estimate that showed a trip from an area just blocks from the siege to the airport would cost $145-185. That journey would normally cost less than $100, according to Uber's website. "This is price surging," he wrote in a comment to Mashable.

After Mashable published a story on the price hikes, the company reversed course and announced that all riders in the area would be free, and that anybody who had been charged the higher amount would be refunded.

"We are all concerned with the events happening in Sydney," Uber spokesperson Katie Curran told Mashable in a statement. "Uber Sydney will be providing free rides out of the CBD to help Sydneysiders get home safely."

Image: Uber

Any riders who were charged the higher amount may email supportsydney@uber.com to get their refund, she said, adding that surge pricing only remains in place to encourage more drivers to come online and pick up passengers from the area.

Uber, the company said, will now pick up the tab.

Uber Sydney's Twitter account tweeted the info.

Uber rides out of the CBD today are free for all riders to help Sydneysiders get home safely. See http://t.co/UIwoom25Bm for more info. — Uber Sydney (@Uber_Sydney) December 15, 2014

The crisis involves at least one hostage taker and about 13 hostages, all being held in a cafe in downtown Sydney, Australia.

At present, little is known about the assailant, other than the fact that an Islamic flag was shown in the cafe window, leading some to suspect that the incident may be a terrorist attack. Police have evacuated most of the area.

Following the police evacuation, many locals have reported difficulty in finding transportation as they attempt to exit the area.

Uber CEO Travis Kalanick had previously said the company's pricing algorithms will be "capped" during situations like what's unfolding in downtown Sydney. "For each market, the state of emergency price will be set after excluding the 3 highest-priced, non-emergency days of the preceding 2 months," he said, adding that the policy "intends to strike the careful balance between the goal of transportation availability with community expectations of affordability during disasters."

Last July, New York's attorney general announced that Uber agreed to put a cap on prices during “abnormal disruptions of the market,” meaning natural disasters and emergencies, to comply with the state's price gouging regulations. It isn't clear if a similar agreement is in effect in Australia.

Uber launched in Australia in Oct. 2012.

Seth Fiegerman contributed to this report.