Popular ride sharing service Uber, is set to be legalised in New South Wales, according to reports.

Next month, NSW will undergo a series of reforms to the state’s taxi industry and one of these will legalise Uber.

NSW transport minister Andrew Constance will soon announce that Uber drivers must pay a licence fee, while taxi owners would be offered compensation for losing its monopoly on the market.

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According to News Ltd, NSW government sources described the legalisation of Uber as “inevitable” and said it would continue to operate “under the radar” even if it didn’t get legalised.

Cost are expected to rise slightly for Uber drivers, as their cars will also be forced to undergo safety checks more often than a regular vehicle would.

It wasn’t reported whether this cost would be passed onto passengers.

But the cost to get into the taxi industry will be “substantially reduced”, according to the report. As it stands, taxi registration can cost up to $320,000. This is set to fall.

An independent report into the taxi industry in NSW – by former cabinet office director-general Gary Sturgess and former Sydney Water chair Tom Parry – recommended taxi owners needed to be compensated for a drop in plate values.

Taxi Council chief executive Roy Wakelin-King said he wanted the government make sure the taxi industry was not disadvantaged by the move.

“It’s not as simple as legalising Uber and everything else will be OK,” Mr Wakelin-King said.

NSW Premier Mike Baird said the independent report was still being considered, and that there was no rush to legalise Uber. 

“That report will be considered as part of the due process of government and go to cabinet in good time,” he told 2GB Radio on Monday.