state cabinet of NSW, which encompasses Sydney, found in favor
of the service while also approving compensation measures for
taxi drivers and announced the establishment of a new regulator.
Uber welcomed the decision on an official account on social
media service Twitter.
State Premier Mike Baird said taxi license plate owners would
receive unspecified compensation that would be funded jointly by
the NSW government and a short-term levy on Uber's service.
Baird didn't disclose details of the planned levy.
Australia's capital Canberra approved the service in October.
Despite regulatory uncertainty - an Uber driver in the southern
state of Victoria was convicted earlier this month for operating
a commercial vehicle without a license - Uber has proved popular
It says it has racked up more than one million registered users,
in a country of just 24 million, despite opposition from the
taxi industry and many local authorities.
Uber has grown aggressively worldwide with its matchmaker
service linking up drivers and passengers. But a lack of
regulation for the relatively new business model has brought it
to the attention of authorities, stalling expansion.
(Reporting by Melanie Burton; Editing by Kenneth Maxwell)
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