A new ride-share company says it's going to kick Uber to the curb, but the Taxi Federation says that's nonsense.

UrbanNZ plans to be operating by August and says it will match Uber's prices, but drivers will only have to pay half the commission rate.

New Zealand Taxi Federation spokesman Tim Reddish says it won't last long, because drivers are fed up with the Uber model.

"They ignore government controls, they don't pay tax in the country -- all those types of things will see the death knell of outfits like Uber and other providers," he says.

UrbanNZ says drivers are angry that Uber slashed its mileage fares to $1.35/km.

Mr Reddish says that's not economically viable.

"The model is basically faulty and it rips people off, rips their operators off, and breaks the law. I think for that reason they won't last."

UrbanNZ claims its customers will be better off because it doesn't have surge pricing.

Mr Reddish says services like Uber are in decline.

"The bottom line is the fares are so cheap they're not economically viable. The model won't work when it's in competition with a good taxi service."

UrbanNZ claims to have more than 400 disgruntled Uber drivers signed up.

Newshub.