A newly formed group of Toronto taxi drivers has now called off a strike planned for Friday's afternoon rush hour.

Paul Sekhon of the United Taxi Workers Association of the Greater Toronto Area had announced Wednesday morning that the group had obtained permits for the protest, which could stretch into the weekend.

The association came together last weekend as tensions between taxi drivers and the UberX ride-hailing service continue to escalate.

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The taxi industry has staged many protests over the service, which it says is illegal.

Sekhon says the group's goal is to see UberX, which connects riders with drivers not licensed as taxis, banned in Toronto.

However, taxi industry spokesman Sam Moini told a Wednesday afternoon news conference at which the strike was cancelled that it could still happen at a future date.