Uber - the popular taxi-hailing app for iOS and Android- was updated on Monday to include fare splitting.

The app's latest feature essentially lets passengers share the cost of a cab trip. But how does it work? After a group of passengers requests a ride, a single passenger can access the "Fare Split" feature by tapping the arrow icon and then inviting other passengers from their contact list. Passengers can also enter mobile numbers manually to send invitations to other passengers.

Once the other passengers confirm themselves, Uber will split the fare evenly among everyone. Passengers who don’t have an Uber account will receive a prompt to download the app and sign up. Uber said this new functionality will eliminate those awkward/tense moments when a friend doesn't have cash or "forgets" to pay you back. The feature also simplifies transactions by doing all the fare-splitting math.

Read: EE to launch 4G-enabled taxis in London and Birmingham 

Uber is available in 35 cities - including London - and 14 countries, and it offers an on-demand service that lets users request a ride without the need for reservations or taxi lines. Users can compare rates for different vehicles and services, add a credit card to their account, set their pick-up location on the map and check the progress of their car at any time.

The latest versions of Uber for iOS and Android are now live on their respective app stores.