The competition watchdog has called on the Government to remove regulatory barriers that prevent ride-hailing platforms such as Uber and Bolt operating fully in the Irish market.
The Competition and Consumer Protection Commission (CCPC) says that this would mean allowing private drivers to provide services using their own cars, subject to appropriate regulatory safeguards.
Uber currently operates in Ireland using licensed drivers and cannot use private cars to pick up passengers.
A statement from Minister for Transport Darragh O’Brien, however, said that such a move was such a move was not Government policy and there was “no intention to introduce it".
"The protection of the consumer and personal safety are vital objectives and must continue to be central to how the taxi and hackney sector is regulated and operated," he said.
The CCPC call came after it published research showing that four in ten people who tried to get a taxi in December reported difficulties doing so.
The report, Attitudes to Taxi Services, also found that 49% of taxi users wanted the choice of ride-hailing, though this was only marginally ahead of the 48% who preferred to keep only licensed drivers for taxi services.
According to the research, 57% of those who expressed an opinion believed that there were not enough taxis available in their area.
The CCPC pointed, however, to stark differences across geographical locations, with 56% of those living in Dublin saying that there were enough taxis in their area, compared with 28% outside the capital.
While 49% of taxi users surveyed would like the option of ride-hailing services, this figure rose to 57% for those who believe there are not enough taxis in their area.
When asked whether they would prefer a fixed fare or a metered fare, 60% said they would support a fixed-fare option.
In November, taxi drivers staged protests over Uber's introduction of fixed fares for drivers using its app.
“Regulatory barriers in the taxi market have failed to facilitate innovations that have flourished in other countries, and consumers are suffering as result,” said CCPC chair Brian McHugh.
“This is not about abandoning oversight or regulation,” he added, saying that any new entrants ”could and should” be regulated to maintain high service and safety standards.
The research comes ahead of the National Transport Authority’s (NTA) regulatory assessment of the licensing of dispatch operators, which is due to begin later this year.
McHugh said that the CCPC looked forward to engaging with the NTA in its consultation process.
Moves towards deregulation are likely to be opposed by taxi drivers, with Freenow by Lyft Ireland telling the Oireachtas Transport Committee last month that such proposals could see taxi drivers losing almost €400 a month in earnings.