Choice conducted an analysis of 56 trips around Sydney comparing the differences between the UberX experience and taxi experience to and from the same location across seven different times.
The comparison found UberX to be cheaper than taxis nine times out of 10, by an average of 40 per cent.
But with price surging, which is based on demand during peak time, UberX prices increased by about 6 per cent.
UberX was found to be more reliable, showing up quicker in 62 per cent of cases when booked. Some taxis failed to show up at all, but were still easier to hail on the street.
On balance, UberX scored better in overall experience (8.3 versus 6.7) and in price.
Calls to regulate Uber
State governments have been struggling to regulate UberX since it launched in Australia last May.
Choice spokesperson Tom Godfrey said the group was motivated to conduct the comparison after the New South Wales Taxi Council launched a "fear-mongering" campaign.
The council's campaign slogan is: "Ridesharing. It’s no safer than hitch-hiking".
The campaign also saw more than 200 taxi drivers rally in Sydney earlier this month to protest against Uber as an illegal service.
"They don't pay GST or tax — they are ripping Australian citizens off," New South Wales Taxi Operator Drivers Association president Anne Turner said.
Why the 40 per cent price difference?
Industry protection was one reason cited in the report as to why there was a 40 per cent price discrepancy for consumers.
The report quoted former ACCC chairman Allan Fels remarks into an inquiry on the Victorian taxi industry in 2012 about the chokehold the taxi industry had on license holders.
"Victoria's taxi industry has operated for many years as a 'closed shop', with a small number of licence holders protected from the effects of competition at the direct expense of consumers, taxi operators and taxi drivers (who continue to experience low levels of remuneration, poor working conditions and a highly risky work environment)."
The Australian Taxi Industry Association said there are a number of costs involved in running a taxi including training courses, tamper-proof security cameras and third-party insurance.
The Choice report said it could not conclusively determine which service was safer, saying there was anecdotal evidence to support either side.
"CHOICE's position is that regulations should apply equally to taxi services and to Uber – but the point of regulating should be to protect consumers and encourage competition in the market, not to protect one particular business from its competitors," the report said.
Choice comparison 'too simplistic'
A subsidiary of Cabcharge Australia, Combined Communications Network (CCN), said Choice's analysis simplified a complex issue.
"I am concerned it was completed and released without adequate industry consultation and appears to be price and service lead, without an in-depth consideration of safety features, GPS tracking, or taxi driver training," said Stuart Overell from CCN.
“Many of the extensive safety features of a taxi are not obvious to a passenger. This includes tamper-proof, always-on GPS to constantly track the whereabouts of taxis, as well as permanently powered, fire resistant security cameras to capture activity inside and outside a taxi."
Mr Overell said he was not surprised UberX was found to be cheaper.
"Taxis are complying with excessive regulation, while ride-sharing networks are not. Ride-sharing has proven that it is currently more cost effective to operate illegally than to comply with state regulation," he said.
Although he acknowledged the issue of service is an area the taxi industry should be concerned about.
"Service is a critical issue for us and something we know is extremely important for passengers. We are focusing on it as a priority."
