UBER allows customers to hail a cab via an app on their smartphone.
The app is free to download and lets users order a ride by simply tapping a button.
It debits the cost of the ride automatically from the customer’s bank account or credit card.
No cash is exchanged as it’s all done electronically.
A map on the app shows users what cabs are nearby, who is driving them and how much the fare is going to cost.
It uses a system it calls ‘dynamic pricing’ or ‘surge pricing’ - buzzwords for a computer algorithm that works out how far you are going, what car you are going in and how long the journey will take.
A spokesman from Uber said: ‘Dynamic pricing is first and foremost about getting more cars on the road.
‘During times of peak demand – where there are not enough drivers on the Uber system – fares increase to incentivise more drivers on to the platform.
‘Dynamic pricing is also fully transparent.
‘During a period of dynamic pricing, riders are fully notified of the increase in price with multiple confirmation screens.
‘Firstly, on the home screen there is a dynamic pricing symbol to notify riders that dynamic pricing is in effect.
‘Secondly, when you select your location you are then informed of the exact multiplier and you are asked to click a button to accept the higher fare or you can choose to click the button that says “notify me if surge ends”.
‘Thirdly, if the multiplier is above 2x you have to physically type in the price multiplier before proceeding.
‘Fourthly you can use the ‘fare estimate’ button to work out how much your total fare is likely to be at the dynamic price multiplier.
‘So, by the time you request your Uber you have been clearly notified of the implications of dynamic pricing.’
For more information on the company go to uber.com