A Sydney Uber driver has been ditched by the ride-booking company after police charged him over the alleged indecent assault of a woman in his vehicle.

Uber said the 21-year-old woman reported the incident to them which prompted them to begin an investigation.

It described the case as "upsetting" and that its guidelines prohibit any kind of sexual conduct.

The woman had entered the vehicle with a man at Kingsford about 12.50am on Sunday and after the man was dropped off, she stayed in the vehicle to be taken to her home in Hillsdale.

Police alleged that during the trip to her home, the male driver allegedly made inappropriate comments to the woman.

When they arrived at her apartment complex police allege the driver reached over and indecently assaulted the woman.

Police alleged that when the woman got out of the car and entered the building, the man followed her inside and assaulted her again before she was able to escape.

A 27-year-old man was arrested at a home in North Sydney on Monday, before being taken to Chatswood Police Station and charged with two counts of committing act of indecency and two counts of common assault.

He was granted conditional bail to appear at Manly Local Court on May 31.