Sydney taxi drivers say they risk being driven out of business by mobile ride sharing apps like UberX, and have called on the NSW Government to crack down on the new business.

UberX turns ordinary drivers into virtual chauffeurs by allowing them use their own vehicles to transport fare-paying passengers.

NSW Taxi Council chief executive Roy Wakelin-King told a meeting of about 100 taxi drivers that the industry needed to stand up for itself.

"The wolves at the door are pretty big and pretty nasty," Mr Wakelin-King said.

"Ride sharing is bad. We all know ride-sharing is undercutting our business. We all know ride-sharing is not fair competition.

"We're saying to the Government, please uphold the law."

The NSW Government said drivers who carry passengers for a fare need authorisation.

Anthony Wing, a senior manager with Transport for NSW, told the meeting that government inspectors had issued fines to UberX drivers.

"The law is clear, that in order to provide a public passenger service for a fare, you need to have a taxi or hire car accreditation or authority," Mr Wing said.

Officers from the Roads and Maritime Service have been conducting covert surveillance of drivers using ride share apps.

The maximum penalty is a $110,000 fine.

Uber rejects taxi industry's criticism

"We are proud of the safe, reliable and affordable choice we are providing riders," UberX said in a statement.

"[The taxi industry is] not concerned with providing a superior service for the people of NSW but, instead, protecting their industry from competition," the company said.

Uber's cheeky recruitment sign outside a meeting of Sydney taxi drivers about ride-sharing apps. ( ABC News: Nick Dole )

The company even installed an electronic billboard outside the taxi drivers' meeting, in the hope of recruiting them.

The billboard promised drivers the chance to "choose their own hours".

Mr Wakelin-King warned drivers against using ride-sharing apps to find passengers.

"You're shooting yourselves in the foot. You're actually giving them a leg-up to ultimately undermine you," Mr Wakelin-King said.

He also urged drivers to provide a high level of customer service.

"Do not give them a reason to go elsewhere," he said.