If you live here, you'll no longer be hit with sky-high Uber surge charges when this happens

The deal between Uber and the NSW government is an Australian first.

Uber has agreed to limit surge pricing in NSW when there is a major disruption to public transport. Source: AAP, AP / Nam Y. Huh

KEY POINTS

• Uber surge charges will be limited in NSW when disruptions happen.
• It comes after passengers were hit with excessive surge charges when the Sydney Trains network came to a standstill.
• The new procedure came into action last week during the major fire in a building adjacent to Central Station.

Uber will no longer be able to impose exorbitant surge charges on passengers during major public transport disruptions in NSW.

In an Australian first, Uber has agreed to limit surge pricing when disruptions happen until alternative public transport options are in place and passenger demand reduces.

Transport Minister Jo Haylen announced the deal after some passengers were hit with excessive surge charges in March when the Sydney Trains network came to a standstill, stranding thousands of commuters during the afternoon peak.

"I knew we needed to take action to fix this," she said in a statement on Thursday.

"The government's agreement with Uber will mean that when a serious incident happens on our transport network, surge pricing will be limited."

Some surge pricing will be permitted to incentivise drivers who decide to operate in the affected areas but it will be limited so passengers don't end up copping exorbitant fares.

Uber will issue immediate notifications and in-app messages to drivers when things go wrong on the public transport network.

NSW Transport Minister Jo Haylen announced the deal after some passengers were hit with excessive surge charges in March. Source: AAP / Bianca De Marchi

Uber now has 24/7 monitoring of public transport activity and processes in place to limit surge when major or safety incidents occur with a clear point of contact in the Transport Management Centre.

The new procedure came into action last week during the major fire in a building near Sydney's Central Station, with Uber monitoring and limiting surge pricing.

Uber general manager Dom Taylor said the ride-share company had become an integral part of the NSW transport network over the past decade.

"We feel a deep responsibility to being a collaborative and constructive part of the solution when major disruptions occur," he said.

"Formalising this relationship with Transport NSW marks an important milestone that will work to the benefit of NSW residents."