The taxi industry is under siege from Uber-style competitors and the state government recently introduced “point to point” transport laws that allow cab companies to run Uber-style hire cars provided they do not compete with taxis on ranks, or accept passengers hailing them from the street.

The chief operating officer of 13CABS, Stuart Overell, said on Friday that its three new vehicles were operating in Maitland and on commuter runs to Newcastle.

Mr Overell said people could book the hire cars by telephone, on the internet or by the 13CABS app.

“The cars do not compete with taxis for rank and hail jobs,” Mr Overell said.

But taxi drivers have complained to the Newcastle Herald that Cabcharge is cannibalising its own business by operating hire cars in direct competition with owner-operated taxis.

Minutes of a Newcastle Taxi Association meeting on Monday show the 13CABS “Uber-style” cars are a bone of contention with drivers, who allege they have been standing on cab ranks and taking jobs from the street.

Drivers say the Maitland cars look the same as normal taxis, with the word “hire car” in small letters added on the side. The association has complained to the Australian Competition Commission.

CORRECTION: AN earlier online version of this story wrongly ascribed the operation of the new cars to Maitland Taxis.