Canberra taxi drivers are angry about a deal between Uber and the ACT Government to get weekend partygoers home from Civic during the silly season.

The agreement, which works in conjunction with the Government's special late-night bus service, cuts $10 off each Uber journey taken after Canberrans hop off a Nightrider bus in December.

Uber will absorb $5 of the discount with no charge to their drivers and the Government will foot the other half of the bill.

The discounted fare is only available between 11:00pm and 2:30am on Friday and Saturday nights to get commuters from major Nightrider drop-off hubs to their doorsteps.

The Government said the taxi industry was consulted and given the same opportunity to innovate, but it was Uber that came to the table with the plan.

ABC News Canberra spoke with cab drivers who said they were upset by the deal and feared they would miss out on fares over the Christmas and New Year period.

But ACT Transport Minister Meegan Fitzharris said innovation was what people wanted.

"It certainly is a disruptive technology, but consumers, the community, have demanded it and are taking it up in great numbers," she said.

"What we're doing this year is really new, really exciting, it's an Australian first.

"We're all about looking for new ideas and new partnerships to move people around the city, to get more people using public transport."

About 2,500 Canberrans use the ACTION buses Nightrider service each year.

But in 2015 numbers fell, prompting the Government put out a call to the industry for ideas to get people back on the bus.

$10 discount won't increase cost to taxpayer: Government

The cost of the Uber deal to taxpayers was not expected to exceed the amount paid for Nightrider services in previous years, as the buses will now only stop at four major suburban hubs, rather than individual stops.

"We can get that really quick service between town centres and a $5 subsidy in the same budget as Nightrider," Ms Fitzharris said.

ACT and New South Wales Uber general manager Henry Greenacre said the ride-sharing company was excited about the opportunity.

"It's extra work for [the drivers], it's going to provide a lot of extra rides for them taking people home late at night," he said.

"We have a technology platform that can be adjusted in so many different ways to help solve these problems. We see a lot of cities in Australia where there's a gap taking people home late at night."

ABC News contacted the Canberra Taxi Industry Association but it did not want to discuss the deal.

Canberra Elite Taxis and the ACT Opposition also declined to comment.