Uber can now track passengers' locations after they are dropped off even when the app is closed

Uber can now track their passengers' locations after they are dropped off and even when their app has been closed.

A new update to Uber's app allows the global taxi service to collect passenger data up to five minutes after a journey has finished.

Previously Uber had only been able to do this when their app was open.

The firm believe that the data will cut down on the frustrating back-and-forth often experienced by customers, as drivers try to ascertain exactly where their passengers are.

On its website Uber said: "Uber collects your location data from the time of trip request through five minutes after the trip ends, including when the app is in the background.

"We do this to improve pickups, drop-offs, customer service, and to enhance safety. Trip Related Location Data is collected during the following times."

On the app users can choose between two information sharing options labelled "Always" and "Never".

However, if riders choose the "Never" option it means they will have to enter in their pick up and drop off details manually each time.

Uber has faced legal issues regarding passenger data in the past, and were forced to pay out US$20,000 (NZ$28,000) after a case in the US.

The firm paid the hefty fine after a probe into its "God View" tool which allowed drivers to track passengers in real time.

MailOnline has contacted Uber for a comment.