Uber is now legal is Tasmania and the state government expects ride-sharing to be up and running by the end of the year.

The Tasmanian Transport Commission this week exempted ride-sharing drivers from the requirement to obtain accreditation, meaning they can operate without a taxi or hire vehicle licence.

"I am delighted to announce that ride-sharing is now legal in Tasmania," Infrastructure Minister Rene Hidding said in a statement on Tuesday, adding he expected Uber to start operating "before Christmas".

Ride-sharing drivers must register and only operate using a cashless computerised booking and payment system that allows passengers to rate their experience, the Transport Commission said in a statement.

Vehicles will be inspected before they can operate and there'll be annual inspections subsequently for cars older than three years.

Legislation allowing Uber to operate in Tasmania passed the state's parliament in mid-August.

The Transport Commission then exempted drivers from the Passenger Transport Services Act on Monday, legalising ride-sharing in Tasmania initially until 2018.