The new rules which come into effect today mean apps like Ingogo, Uber, GoCatch and Jayride are now more free to take on the old-school taxi market, with taxi licences now meaning drivers no longer have to affiliate with major networks like 13 CABS, for example.

This means drivers can now work for more than one network, or independently, and no longer have to pay monthly fees to taxi networks, the majority of which are controlled by Cabcharge.

The Victorian government also today introduced a new "open-entry" system for obtaining taxi licenses in a bid to encourage more players in the market.

License fees will vary depending on which zone a driver operates in, while licences will be available to eligible applicants for an annual fee, with lower fees for regional areas and wheelchair-accessible vehicles.

The annual fee is a touch over $22,000.

Founder of taxi booking app ingogo Hamish Petrie said today he would like to see the new rules for Victoria rolled out nationally.

“Taxi services have been held ransom to a few greedy interests for too long and it’s important to create a national standard to bring consistency and certainty to this important industry,” said Petrie.

“As new players like ingogo deliver more and more jobs, it’s putting further pressure on Cabcharge, who have maintained their market share based on an unfair legislated income stream.”

Ingogo, launched in Sydney initially but now available in Melbourne too, allows users to book and pay for a taxi via a smartphone app.

Almost 1000 taxis have signed up to its service since its May launch.

Petrie said the changes will have wide-ranging implications for Victoria's taxi network, but if the changes work as planned they should become federal.

“We would like to see a period of review of the rollout of the Victorian model, and federal government oversight to ensure that any changes to taxi legislation are considered from a national perspective,” he said.

Oher taxi booking apps, Jayride, Uber and goCatch, were also impressed with the changes in Victoria.

"Restricting how people get around is not smart, said Jayride's founder Rod Bishop.

"On one hand governments complain about congestion, on the other they try to limit how you can travel and who with. It's no wonder we live in gridlocked cities. Changes like this open up competition and foster new ways to get around. This is a positive change that will work with Jayride to help people find a ride, and create city ecosystems where people can live without their own cars."

“We applaud any reform that puts customers first and promotes competition, said Uber general manager of Sydney, David Rohrsheim.

GoCatch co-founder Andrew Campbell said, “this is a positive development which we expect will assist with the continued growth in the goCatch business.”

Professor Alan Fels, who was in charge of a two-year inquiry that led to today's changes, told The Australian Financial Review that moves were a key move towards improving competition.

“There will be a benefit for consumers, you will also improve the prospects of those new players like Uber and so  on entering the industry and offering a new deal," he said.

The full list of reforms can be found on the Victorian Taxi Services Commission website.