Taxi drivers in Perth have challenged the West Australian Government to make a difficult choice, between them or the controversial app service, Uber.

The passenger charter service operates through smartphone technology and allows customers to book and pay for vehicles after providing their personal information, including credit card details.

The California-based service has been operating in Perth for about three months and is being seen as an unwelcome game-changer for local cabbies.

"Uber is one organisation, we are many families," one driver told the ABC during a visit to one of Perth's busiest taxi ranks, at the domestic airport.

"Now, the Government has to make a choice. Who is it going to choose? Us or Uber?"

The resentment has been building since a recent Liberal Party State conference when WA Transport Minister Dean Nalder told delegates that deregulation of the taxi industry was inevitable.

Rahul Puri, 29, said the value of his taxi plates, which he bought just two months ago for $315,000, plummeted overnight.

"My biggest worry is my asset value dropped and if it comes to zero, I will be paying off to the bank for my whole life, for nothing," Mr Puri said.

No fines issued to Uber: taxi board

The taxi industry is angry that some drivers, or "partners" as Uber describes them, have been flouting regulations by accepting fees less than the minimum fare allowed for Small Charter Vehicles of $60.

"We are very cranky that there have been no fines issued that we're aware of," Howard Lance of Perth's Taxi Industry Forum said.

The RAC, which has commissioned its own review of the taxi industry, says Uber's success shows it is providing a service that people like.

RAC executive general manager Patrick Walker said Uber had a strong business model and the company was now worth around $18 billion internationally.

"I think what the State Government is doing perhaps is looking at how things are evolving," Mr Walker said.

"I think that they are not warmly enamoured with the civil disobedience model that Uber has introduced to the market, but I think most members of the public, certainly our members who talk to us, would like to see some changes."

It remains to be seen how big those changes will be.

In a statement to the ABC, Uber said it had no plans to introduce its most controversial service, Uber X, to Perth.

The model, which has met with a backlash from governments both interstate and overseas, allows ordinary motorists to offer a ride-sharing service.

Mr Lance, who has been driving cabs in Perth for over 30 years, believes there will always be a market for taxi drivers, regardless of the growth of smartphone apps.

"Anyone who wants to come and eat part of your lunch, you need to take it on board," Mr Lance said.

"But my view is that you just do what you do, and you do it better than they do."

He is meeting other drivers' groups in Melbourne next week to discuss how the taxi industry can counter the effects of Uber.