People won't have to wait as long to get a cab or pay as much for the ride under moves by NSW's pricing regulator to increase the number of taxis on the road.
In its annual draft report, the Independent Pricing and Regulatory Tribunal (IPART) identified the need to offer 280 more licenses for operation between 12pm and 5am.
In order to improve entry to the industry, it's also recommended 205 additional unrestricted taxi licences.
The recommended increase from July next year would allow the industry to meet growth in passenger demand while reducing costs for operators and drivers, IPART chairman Peter Boxall said on Monday.
"(It) strikes a careful balance between positive outcomes for consumers, drivers and taxi operators, and minimising the impacts on existing licence holders," he said in a statement.
He said the draft recommendations would cut waiting times on Friday and Saturday nights by an average of 7 per cent while increasing the number of taxi trips taken in Sydney by about 6 per cent.
"Increasing the number of taxis, particularly during underserviced Friday and Saturday night-shifts, will reduce waiting times leading to more taxi trips, higher taxi occupancy and improved hourly earnings for drivers," Mr Boxall said.
There's also good news for customers catching taxis over the festive period, with Transport for NSW confirming on Monday that secure taxi ranks would be operating on more nights of the week throughout December.
Extra security guards will be on hand to make sure Christmas shoppers and those attending parties get home safe.
"With more people out at night celebrating Christmas and the end of 2012, we want to make sure both revellers and taxi drivers are kept safe and everyone gets home safely," said a Transport for NSW spokesman.
"That's just as important in Cowra as in Coogee, so we have secure ranks operating extra nights throughout the state, not just in Sydney."