Queenslanders will be stuck with higher taxi fares and longer wait times if the state government does not legalise ride-sharing companies such as Uber, according to a review of the industry.
A Queensland government taskforce is considering four possible options for the taxi industry, including fully deregulating the sector and opening it up to ride-sharing services such as Uber.
Other options include legalising ride-sharing services but allowing taxis to retain a monopoly on hail-and-ride fares and restricting ride-sharing to the state's southeast corner while maintaining a ban in regional areas.
The final option is to maintain the status quo, under which Uber and similar services are illegal.
The taskforce's chairman, Jim Varghese, says he hasn't decided which option he prefers.
"I can honestly tell you at this time, all four options have merit," he told ABC.
But a consultation paper, released on Friday, acknowledged that sticking with the status quo would leave customers paying more and waiting longer.
"By not introducing greater choice into the market, this scenario prevents the gain in customer welfare that we have observed in other jurisdictions," the report said.
"Market entry restrictions create scarcity in the market for personalised transport which results in customers facing higher prices and longer wait times than would be the case in an environment where supply is not constrained."
It also noted that the government would face a "significant enforcement burden" if it tried to shut down ride-sharing services, which have continued to act outside existing regulations.
But Katter's Australian Party leader Robbie Katter, a vocal opponent of Uber, said any reform needed to be done in a "fair" way.
"We've got to do this in a mature way and not just float to some populist demand in some areas. I think the big message is: beware the shiny bauble," he told reporters.
Meanwhile, Mr Varghese also said the review is also looking at linking taxis to public transport networks to help drivers maintain revenue in the face of the increased competition from Uber.
Under that proposal passengers would be able to use their go-card to pay for fares and taxis would also be granted access to some busways.
That, he says, would help reduce the under-utilisation of taxis and improve their revenue.
The taskforce will hold public meetings in Mackay, Townsville and Brisbane to discuss the options for the industry and will hand its final report to the Palaszczuk government in August.
© AAP 2018