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Uber surge prices to be capped in NSW

A person driving a car (file image).

In an Australian-first move, Uber’s agreed to cap surge prices on certain trips.

The rideshare company has signed a deal with the New South Wales government which will restrict how high prices can go during times of peak demand such as major emergency incidents or public transport failures.

The company faced outrage in March this year, when Sydney’s train system came to a complete halt during the commute home due to a technical fault.

For some travellers, a ride that’d usually cost AUD$40 (NZ$43.35) skyrocketed to AUD$500 (NZ$541.90).

Uber was forced to apologise and said it’d refund customers who were charged significant sums.

Speaking to Sydney radio station 2GB, Transport Minister Jo Haylen said today a "sensible agreement" had been struck.

"This will put people back at the centre of this operation, better than us being dictated by an algorithm," Haylen said.

Going forward, Uber will now work directly with state transport officials during major incidents to help set pricing.

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