Taxi drivers whose livelihoods have taken a hit from Uber and other ride-sharing services will be able to claim $20,000 in compensation through the NSW government.

Under a $250 million industry transition package, taxi drivers who had licence permits before July 2015 will be able to apply for $20,000 one-off grants for up to two licences.

Taxi drivers doing it tough will also be able to apply for "hardship" grants out of a $150 million fund.

The payouts soften the blow of the Baird government's decision in 2015 to legalise Uber and other ride-sharing services, which were already taking customers away from taxi drivers.

Transport Minister Andrew Constance says the $250 million support fund is one of the most generous packages in the world and will help traditional drivers transition to the new business environment - however the scheme is only partly funded by government.

Passengers taking both taxis and Ubers will be slugged for the remaining $100 million, paying a $1 levy on all trips over the next five years.

The NSW Taxi Drivers Council has cautiously welcomed the financial package, but believes drivers will need more.

"It's a significant amount of money, however the loss of value and income to our members has been more significant than what is on the table at this stage. There needs to be more petrol in the tank," chief executive Roy Wakelin-King told AAP.

He said the value of a taxi licence plate in Sydney had plummeted from $375,000 in July 2015 to $210,000 in January this year.

The state government will contact the 4000 taxi licence owners in NSW about the compensation with applications due before January 13, 2017.

Licensees can contact the NSW Taxi Council for help with lodging applications.

A review of the state's compensation package will be taken in 12 months' time.