A second wave of reforms to the state's troubled taxi industry could see cab companies allowed to set their own fares, although there will likely also be extra protections for customers introduced.
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Laws likely to be considered by cabinet will form the next stage of the Andrews government's taxi industry reforms.
They are likely to include allowing networks such as Silvertop or 13CABS to compete against each other on fare prices.
The new laws are being considered in a bid to equalise the taxi industry's ability to compete with Uber.
It, along with other ride-sharing businesses, was legalised this year.
When asked how the new fare model would work and if price caps would be put in place to protect customers, a spokeswoman for Public Transport Minister Jacinta Allan said the government was "still working through the final details" of reforms to taxi and hire car services.
Along with legalising Uber, the first stage of taxi industry reforms included drastically reducing the fees for up-front taxi licences.
Ms Allan's spokeswoman said these changes were providing proper support to the taxi industry. The changes were designed to boost choice and reduce fares for passengers.
She said the former Baillieu and Napthine governments, in power from 2010 to 2014, had made "piecemeal reform" to the industry that had slashed hundreds of thousands of dollars off the value of taxi licences - without providing owners with proper compensation.
Former Victorian premier Jeff Kennett, whose government comprehensively overhauled the state's taxi licence system, told 3AW on Friday morning that subsequent state bureaucracies had "totally screwed up" ride-sharing law reform.
"You can't just keep introducing new pieces of legislation weeks after you've passed legislation to deal with the same issue," Mr Kennett said.
Successive Victorian governments had had "no natural attachment" to the taxi industry, he said.
"They just see it as another political issue they've got to address without having properly thought it through."
One taxi industry figure said that the next round of taxi legislation would be introduced next week, but that it was highly unlikely drivers would simply be able to set fares independently.
"That would be a little chaotic," they said.
