Australian taxi drivers are calling for tighter regulations on the ride-sharing industry after a move by New York City to cap the number of Ubers.

Key points: New ride-share licences have been halted in New York City

New ride-share licences have been halted in New York City A minimum wage for drivers is also part of New York City council's overhaul of the industry

A minimum wage for drivers is also part of New York City council's overhaul of the industry There is push for similar reforms in Australia's major markets

The New York City council voted to halt new licenses for ride-share services for a year — including Uber and US-only operator Lyft — to allow for further study of the industry.

The legislation will also enable the city to set a minimum pay rate for drivers.

Michael Jools from the Australian Taxi Drivers Association said the stricter controls would help to alleviate congestion.

"Controlling the absolute numbers of ride-share vehicles is a positive move because the congestion in all the cities is increasing," he said.

"Sydney and Melbourne have so many ride-share vehicles that there's a congestion problem in the afternoon and evenings in the CBD."

He claimed there were double the number of ride-share cars as taxis in Sydney and Melbourne, and that a similar move in Australia may be too little too late.

In Sydney, the ride-sharing market is crowded.

Estonian-headquartered Taxify launched in December 2017, while Indian company OLA kicked off in March. Australian owned GoCatch is also available.

Income security paramount

The move to tighten regulation in New York was in part prompted by several recent driver suicides.

An ABC investigation found many licensed taxi drivers have warned of the mounting human toll due to industry deregulation, with livelihoods wiped out and increasing pressure on families.

Mr Jools said making sure drivers got the minimum wage would be the best way to level the playing field.

"In Australia the average hourly income that a driver earns is less than $10 an hour — a third of the national minimal wage," he said.

"And that is an absolutely horrific problem which is a fundamental cause of the level of service in Australia."

"Max" from RideShare Drivers United has also welcomed the move in New York.

However, he said better driver education and protections, rather than a minimum wage, could be more helpful.

He said many ride sharing drivers did not fully understand the costs of their job.

"We would like to see a committee whose job is to check the expenses of the car to find out what the cost is to the driver per kilometre," he said.

"As a self-employed person I want to know how much the job is going to pay me."

The Fair Work Ombudsman is currently investigating Uber and whether its contracts with drivers comply with Australian law.

Uber has been contact for comment.