The Victorian transport minister has warned off people from driving others around for a fee in their own car using a new "ride-sharing" feature in the smartphone app Uber.

Terry Mulder said on Friday the Victorian Taxi Services Commission was investigating Uber's ride-sharing practices. The sprouting service, called "low cost", is up to 50 per cent cheaper than a traditional taxi and is already gathering pace in Sydney.

Victorian Transport Minister Terry Mulder has warned the public against signing up to become drivers on Uber's ride-sharing service. Credit:Rob Gunstone

"The TSC is currently investigating this practice and will take appropriate action if such activity is detected in Victoria," Mr Mulder's spokeswoman said. "All taxi and hire car drivers go through a rigorous accreditation process before they are allowed to drive a taxi or hire car – this is for both the safety of drivers and passengers.

"The Taxi Services Commission strongly discourages any members of the public applying for any job advertisements that offer quick cash for providing taxi and hire car services using a private vehicle."