More than 200 taxi drivers have rallied in central Sydney to urge the State Government to crack down on ride-sharing service Uber.

Dozens of drivers circled Macquarie Street, outside the state's Parliament while many more attended the protest on foot.

New South Wales Taxi Operator Drivers Association president Anne Turner slammed Uber as an illegal service.

"They don't pay GST or tax — they are ripping Australian citizens off," she said.

Taxi drivers gathering on Macquarie Street. ( ABC News: David Spicer )

"Our members are suffering immensely. Before we would sit at Sydney Airport for half an hour. Now sometimes it can take two to three hours to get a little job."

Private chauffeur services such as Uber are currently being reviewed in New South Wales by a taskforce examining the rise of smartphone ride-sharing applications.

A spokesman for Transport Minister Andrew Constance said the taskforce was expected to report back to the Government by the end of October.

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Taxi driver Andy Horn told the crowd the Government should be ashamed of itself over its attitude towards Uber.

"Ladies and gentlemen, you are out there slogging your arses off, 12 hours a day and more, and there's a love affair with this company called Uber — an illegal operation that's called ride sharing [that is] nothing but a taxi service by another name," he said.

"You are $200 a day behind when you go to work, competing with these animals."

Prosecutions against 24 drivers for alleged breaches of the Transport Act were dismissed in court last month.

The drivers were originally fined but the case foundered because of legal technicalities.

Uber hit back at claims the service is illegal in New South Wales.

A spokesman described the UberX service as unregulated but that the company hoped that would change as soon as possible.

"The time has come for political leaders to provide certainty to [more than] 15,000 Australians who earn an income on the Uber platform, and more than 1 million riders who choose Uber to get around their cities, and implement sensible, safety-based ride-sharing regulation as quickly as possible," the spokesman said.

Protest was inconvenient for public: Minister

Transport Minister Andrew Constance said the protest did not help the cause of taxi drivers.

He said the industry needs to work with the Government, not against it, while a taskforce looks at the issue.

"The bottom line is that type of strike action is only going to inconvenience the public because we have in train a very serious process to reform the industry and get it to a point where it can have a viable industry in this state," he said.

"The industry itself has a lot of high costs associated with putting a cab on the road and as a result, they are not on the level playing field that they want to be.

"And so we are looking to ways that we can minimise the regulations, minimise the costs associated with running a cab in this state.

"What we are saying is work with us on the taskforce, this type of action today doesn't help that process at all."