The federal grant comes just weeks after a local taxi driver was bashed and robbed in Queanbeyan in November after picking up two men from the Crawford St rank.

Local cab driver and Chairman of the Queanbeyan Taxi Co-op, John Britton, said the upgrade would help local taxi drivers feel more secure, especially when working at night.

"It's not before time," Mr Britton said.

"It will make the drivers feel a lot more comfortable and safer at the rank, particularly on Friday night and Saturday night. If there's going to be trouble, that's when it does happen."

The upgrade also includes new seating, shelter and improved lighting at the rank, and was funded under the Federal Government's Safer Suburbs-Taxi Security scheme.

Work will commence this month and is expected to be completed by the end of February.