New South Wales Premier Mike Baird has signalled his Government would consider compensation for the taxi industry if Uber gets the green light to operate legally in the state.

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Taxi owners currently pay about $300,000 to buy taxi plates.

Taxi owner Les Rosenberg said he would sell his plates to fund his retirement.

"I am now 70 years old. I'm thinking to [retirement]," he said.

Mr Rosenberg said, if the NSW Government decided to allow Uber, he would expect compensation for the loss of his plates.

"We dedicate part of our life to have a living from this," he said.

Mr Baird has suggested he is inclined to agree.

"That is something that would be considered as part of this process and what we need to understand is the taxi industry is effectively 6,000 small businesses," he told 2UE this morning.

"They have bought into this industry on the basis of the significant upfront capital investment and often many have put their whole life savings into it, so it is a challenge when new technology such as this comes along."

Uber, a global ride-sharing company, does not own any taxi licences, but it does have a popular smart phone app, which quickly connects customers with freelance drivers.

Uber said more than 350,000 people were already using its service in NSW.

Today, News Corp reports suggested the Government would legalise Uber from next month.

The article claimed regular taxis would retain the right to "rank and hail" services, but Mr Baird said no decision had been made on this, either.

Mr Baird said the report had "jumped the gun".

Public policy expert Gary Sturgess has been preparing a report on the possibility of legalising Uber.

"That report will be considered as part of due process," Mr Baird said.

NSW Taxi Council chief executive Roy Wakilin-King said he was keen to see the report and argued there should be compensation if the industry is adversely affected.

"The vast majority of licences here in New South Wales are your typical mum and dad owner or self-funded retiree, they've invested in good faith," he said.

"There have been measures put in place in the past where structural adjustment has occurred and there has been minimum impact on the taxpayer at the same time."

Too early to consider compensation, Uber says

Uber's general manager in Australia, David Rohrsheim, suggested it was too soon to be talking about compensation.

"I think it's a bit early to be talking about the death of the taxi and any need for compensation," he said.

"Taxis today have the exclusive right to pick up strangers off the street to sit in taxi ranks, and that's 80 per cent of their business and that's not part of what Uber does in the ride-sharing market.

"We're a very new entrant, we are proud to say that almost half a million people have been using the Uber app in New South Wales and they've taken several million rides."

Uber is extending its reach in capital cities around the country.

In Queensland the state's Taxi Council has welcomed competition from Uber, providing it meets the same standards as the taxi industry.

The Taxi Council's chief executive, Benjamin Walsh, said competition in the industry was not new.

"We've got a very healthy competitive taxi market and there has always been a number of companies that have moved in and out of the market over many, many decades and our simple point of view is anyone should be allowed to come into the market, without any problem but there are rules and regulations and anyone who wants to come in simply needs to play by those rules and regulations," he said.

However, Mr Walsh said NSW taxi licence plate owners do deserve compensation if Uber becomes a legal entrant.

"I think it's only a fair thing if the New South Wales Government were to go down that path, I think it would be un-Australian to do anything but incorporate an element of structural adjustment."