Uber has been banned in London, but rules are being relaxed for Uber - and taxis - in New Zealand from Sunday.

The new rules, which Uber lobbied the Ministry of Transport for, include cheaper and faster P endorsements for drivers to allow them to carry passengers legally.

Many Uber drivers have been operating illegally with no P endorsements on their licences, as Uber did not require drivers to have them.

An Uber spokesperson said the company would follow the new regulations when they came into force on October 1.

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"We're pleased to see the New Zealand government deliver sensible, safety-based reforms for the benefit of more than 330,000 Uber riders and 4000 rideshare drivers.

"We've been in close consultation with the NZTA since the passage of the bill and intend to comply with the requirements of the new framework when it comes into effect."

The new rules also change the requirement for in-vehicle cameras - there is an exemption for services provided only to registered passengers who provide their details in advance.

The requirement for all taxis to have in-vehicle cameras was introduced in 2011 after two drivers were murdered.

There would no longer be any requirement to pass area knowledge or English language tests.

Drivers would still be required to keep logbooks, which Uber had objected to.

The new law was introduced to Parliament by Transport Minister Simon Bridges just over a year ago, and passed last month.

He said the law needed to keep up with technology.

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"New technologies are rapidly emerging, so we need to ensure we have the right regulations in place to allow innovation to thrive while managing safety risks.

"Smartphone apps and other advances in technology have changed how the small passenger service sector can operate."

The law changes come after Uber lost its licence to operate in London, citing "a lack of corporate responsibility". The company has appealed the decision.

Transport for London said the decision was based on the way drivers' background checks were completed, how criminal offences were reported and the use of software designed to stop regulators accessing its app.

Uber has also been banned in Bulgaria, Denmark, Hungary, Australia's Northern Territory and Brno, the Czech Republic's second-biggest city.