RACQ's executive manager of public policy Michael Roth believes there is a place for taxis and ride-sharing companies such as Uber in Toowoomba and throughout the state - but as long as there is regulation.

The controversial ride-sharing service has launched in Toowoomba. Drivers can face fines of about $2300.

Although Uber has a number of safety regulations in place, Mr Roth said Queensland needed to follow the lead of states such as New South Wales and the Australian Capital Territory to legalise ride sharing to ensure companies followed safety regulations.

"We need to make sure it gets done right," he said.

He said taxis needed to be the only transportation in the industry to be able to stop at taxi ranks or be hailed by passengers.

"That distinction is important because if someone just shows up (in a ride share vehicle) there is nothing to identify who they are to the passengers," he said.

Ride-sharing would take away some of the revenue for taxis but believed that there would be growth in the industry, which would mean the cost of getting from A to B would be cheaper.

"I don't think taxis will forgive (Uber) but they will both be important parts of the transport system."

Member for Mt Isa Rob Katter yesterday warned the unregulated service did not have the same standard of government mandated safety provisions as the taxi industry.

The KAP, who successfully legislated tougher measures on unlicensed drivers earlier this year, is eager to see a fair reform, following the outcome of the upcoming OPT review.

The Chronicle contacted Garden City Cabs for comment.