Sick of fighting Uber, the taxi industry has decided to join them at their own game – by putting a fleet of unlicensed taxis on the road.

The new cabs look and feel just like a taxi, and charge the same for a trip. But they don't have taxi licences, and pay no taxi registration fee to the government. As recently as September taxi licence plates were selling for $165,000.

One of the private-hire taxis linked to 13CABS.

"The implication seems to be that if 13CABS can do it, anyone can provide a service without a licence," said Professor Allan Fels, former head of the Australian Competition and Consumer Commission and now member of the Uber global advisory board.

"This would also seemingly cut the value of licences to zero."