Uber stands by New Year's surge price

Surge pricing by Uber won't be regulated as part of the ride-share service's legalisation in NSW, instead transport users are being urged to shop around.

Uber drew the ire of some customers on New Year's Eve after they were charged upwards of 7 times the price of the normal fare.

Sydney woman Skye Shanahan complained to the company when a trip from Neutral Bay to Blacktown that would normally cost about $90 ended up costing more than $720 after she approved a surge fee multiplying the trip cost by 7.9.

Transport NSW says fares for ride-share services are set commercially by the company.

"In this deregulated environment it is critical that customers become well informed of market options to ensure value for money," a Transport for NSW spokesman told AAP.

Uber has stood by its surge policy which a company spokesman said is designed to ensure the service is available within minutes, even in busy times.

"Riders are repeatedly notified about the pricing directly within the app and asked to confirm and accept increased fares, or can opt for a notification when prices drop," a spokesman told AAP.

The NSW Taxi Council has been contacted for comment.