Concern has been raised over fixed fare systems by taxi companies.
Groups representing drivers want stricter regulations for taxi apps, and say those offering cheaper rates to passengers are undermining the future of the industry.
The Oireachtas Transport Committee also heard how the number of taxi licences has fallen by a quarter since 2009, with a particular shortage of drivers in rural areas.
Sligo-Leitrim Labour Senator, Nessa Cosgrove says the reliance on taxis locally is there for all to see.
Responding, President of the Irish Taxi Drivers’ Federation Alan Cooley agreed with Senator Cosgrove's concerns: