Uber is closer to becoming legalised in NSW, but the state government says it's in no rush to regulate the controversial ride-sharing service.
The NSW government has confirmed it has received the recommendations from an independent taskforce into the taxi industry and transport providers such as Uber.
But it dismissed as "premature" a media report suggesting the service would be legalised by the end of the year.
"That (taskforce) report needs to be examined properly and go through the proper process in cabinet," Roads Minister Duncan Gay told reporters in Sydney on Monday.
"At the end of that process, we'll be in a position to announce something".
Providing compensation to taxi drivers would be considered if the government regulates Uber, Mr Gay said.
Taxi company Cabcharge called for Uber drivers to be subject to the same set of rules as taxi drivers, such as criminal record checks and medical testing.
"It is absolutely vital that we have a sound set of rules that can be applied and enforced for the safety of all passengers taking personal transport," Cabcharge CEO Andrew Skelton said.
The NSW Taxi Council called for a "level playing field" for all transport operators.
"Like other industries that have undergone micro economic reform that has had negative impacts, compensation and structural adjustment must be part of this process," the council said in a statement.
Opposition Leader Luke Foley said the potential regulation of Uber was long overdue.
"(The government) have been like ostriches burying their heads in the sand, hoping Uber would just go away," he said.
"If the government has waved the white flag today and it recognises Uber's here to stay (and) we ought to be smart about how to regulate it, well I welcome that belated recognition."
If given the green light, NSW will become the second Australian government to legalise the service after the ACT.
Ride-share drivers in Canberra must have government accreditation, pass criminal and driving history checks, and have safety checks done on their cars.
Fees were also drastically cut for taxis and hire cars after the service was regulated last month.
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