The Victorian Taxi Association says compensation must be paid to taxi drivers if Daniel Andrews decides to legalise Uber.

The state government is still considering what to do with the industry, but faces increasing pressure to act after the NSW government allowed ride-sharing yesterday.

Under the NSW deal, taxi drivers will receive $20,000 in compensation.

Taxi Association CEO David Samuel says a decision is needed, but there’s no need to rush.

‘It needs to be done properly,’ he told Tony Jones on 3AW Mornings.

‘I know the minister’s taking her time and considering it properly, and I think that’s the right approach.

‘There seems to be a bit of a rush now because the last bloke did it. I think it’s more important that we get it right.’

Click play to hear David Samuel’s robust debate with Tony Jones