The NSW government has launched a new task force to look at regulating the ride-sharing company Uber as part of a wider examination of the challenges facing the taxi industry.
The move has been welcomed by the general manager of Uber Australia, who pledged active involvement in the inquiry.
The independent task force will examine "point-to-point transport" including taxis, hire cars and ride-sharing apps, Minister for Transport and Infrastructure Andrew Constance announced on Wednesday.
It will look at competition in the market, the impact of taxi regulations, new technologies and and customer safety.
Mr Constance said current regulations should be looked at closely to ensure a "more even playing field" and to guarantee a strong future for taxis.
"The taxi and point-to-point transport industry is changing rapidly and so are our customers' expectations," he said.
"We know cities around the world are grappling with these changes and in particular, the introduction of new unregulated ride-sharing apps. I have made it a priority to get to the bottom of these issues, no matter how complex."
The fast-growing Uber service has had a presence in Sydney for more than a year and has emerged as a significant competitor to taxi services.
The UberX platform, in which motorists use their own car to pick up passengers, has recorded more than a million rides in Sydney.
The government has been fining and attempting to prosecute UberX drivers, using the Passenger Transport Act, but has faced difficulty doing so.
The announcement of the task force follows a report by the Independent Pricing and Regulatory Tribunal which recommended the establishment of an independent body to monitor and regulate taxi services and taxi-like services.
The report concluded that weakness in the taxi industry was due to competitors and that new entrants should operate on a level playing field. UberX drivers avoid tens of thousands of dollars of costs incurred by taxi drivers.
Uber Australia general manager David Rohrsheim said the task force was recognition of the "the need for outdated regulation to catch up with changing customer choices". He said that Uber would be actively involved in the inquiry.
"Today's announcement is a victory for competition, consumers and choice," he said.
NSW Taxi Council chief executive Roy Wakelin-King said the task force provided an opportunity to create a new regulatory framework but he cautioned against "undue haste" in the handing down of recommendations.
"We want a properly regulated taxi industry which is efficient, provides high quality services and is safe," Mr Wakelin-King said.
"It doesn't matter to us who is trying to or seeking to provide those services, what matters to us is that the regulations are clear and they are applied to all."
The task force will also examine the industry in regional NSW, where taxis face pressure from hire cars and courtesy and community transport. The services available for people with disabilities and others who rely will also be looked at too.
Professor Gary Sturgess, the architect of the Independent Commission Against Corruption and the Independent Pricing and Regulatory Tribunal, will head the task force. It is due to hand back recommendations to the government by the end of October.
NSW Opposition Leader Luke Foley last week said he would introduce a private member's bill to Parliament this year to regulate Uber.
On Wednesday, he said: "It's time for the government to get out of the slow lane and show real leadership when it comes to ride sharing.
"People are voting with their feet - hundreds of thousands used Uber last year. The public should be free to choose the services they want without fear of retribution from government."
Multiple states in the United States have passed laws regulating Uber, including introducing controls on vehicle standards, insurance, accreditation of drivers and how ride-sharing services can pick up passengers.
