Environment Minister Mark H Durkan has called for compromise after MLAs blocked his plans for a unified taxi licensing system.
His proposed single-tier Taxi Licensing Regulations 2014 were voted down by the Assembly, having previously been supported by the environment committee.
The plan for a uniform licensing arrangement mean all taxis could be pre-booked or hailed on the street.
The minister had said it would "raise standards, reduce illegal taxiing, improve compliance and facilitate greater competition".
"I therefore call on all political parties to hold to the commitments made during the debate to find a sensible compromise, recognising that the status quo is not sustainable," Mr Durkan said.
The DUP's Peter Weir said there was concern that instead of fostering more competition it would produce a market "overwhelmingly dominated" by the two biggest companies. Sinn Fein's Cathal Boylan said public hire firms would be less able to cope with the extra costs associated with new signage, metering and driver testing.
Belfast Public Hire Taxi Drivers spokesman Gerry Maxwell said the regulations would mean the end of Belfast's black taxis.
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