The Competition and Consumer Protection Commission (CCPC) is calling for the Irish taxi market to be opened up to ride-hailing platforms.
The CCPC wants the removal of regulatory barriers to facilitate services like Uber or Bolt, which currently only operate with licensed taxi drivers, into the market.
The move would mean allowing private drivers to provide services using their own cars, subject to regulatory safeguards.
The Commission said that research it carried out between January and February this year has highlighted a shortage in the supply of taxis.
A survey of more than one thousand consumers suggested that more than half of respondents (57%) do not believe there are enough taxis in their area.
It said there were "stark differences" of opinion, depending on the location.
The research found that in Dublin, 56% of those surveyed believe there are enough taxis.
However, outside Dublin, just 28% of people agreed. In Connacht and Ulster, the figure was even lower at 21%.
The CCPC said that 49% of consumers surveyed said they would like the option of a ride-hailing service, and 60% supported a fixed-fare option.
Chair of the CCPC Brian McHugh said that consumers are suffering due to a failure to facilitate innovations in the industry.
"Regulatory barriers in the taxi market have failed to facilitate innovations that have flourished in other countries, and consumers are suffering as a result. Our research shows a clear preference for more choice among consumers who are not getting the service they need.
"This is not about abandoning oversight or regulation. Any new entrants could and should be regulated to maintain high service and safety standards. Consumers and businesses deserve an innovative, functioning taxi sector that provides choice. Consumers shouldn't be faced with long waits or the possibility of staying home due to a lack of taxi availability," he said.
The survey also indicated that 40% of people who tried to get a taxi last December had issues in doing so.
The CCPC is now calling on the Government to remove key regulatory barriers in the taxi market.
It said the goal is to achieve a balance that protects consumers and ensures access, while also allowing competition and innovation.
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.
The CCPC said it looks forward to engaging with the NTA in its consultation process.
