Australia's newest ride-sharing company, GoCatch, is cutting the price of off-peak fares by 5 per cent in Sydney in an attempt to challenge Uber's grip on the market.

Backed by investors including billionaire James Packer and SEEK co-founder Paul Bassat, GoCatch has signed up more than 1000 drivers in Sydney since it launched its ride-sharing arm, GoCar, in late February.

GoCatch chief executive Ned Moorfield said the company planned for its pricing to "always be cheaper than Uber".

"[The lower prices are] just a one of a number of elements we have for differentiating ourselves from Uber. Not having surge pricing is quite significant," he said.