New regulations could be on the way for Uber, a phone app taxi service that's taken Auckland and Wellington by storm.

A discussion paper released by the Government today wants all passenger service likes regular taxis, shuttles, dial-a-driver and Uber to come under the same rules.

Associate Transport Minister Craig Foss said it's about "making the rules fair for everyone and leveling the playing field".

"The advantages here are allowing innovation and technology for all participates in the small passenger service." 

Mr Foss said all drivers carrying paying passengers currently have to have a licence, and he believes applying regulations across the board should affect costs greatly.

"Overall, the preferred proposals do lower cost for everybody."

Uber said it's disappointed and the recommendation does nothing to cut red tape for people wanting to earn extra income through sharing rides in their own cars.

It argues it's not a taxi service - it links passengers with drivers who are private contractors.