Sydney taxi drivers and the NSW Taxi Council are furious with a new initiative launched by US tech start-up Uber that allows car owners to use their own vehicles to taxi people around for a fee.

The NSW Roads and Maritime Services has requested a meeting with Uber to discuss how the NSW Passenger Transport Act applies to the new service, and how Uber will respond to its obligations under the act. The RMS said it was "looking forward to Uber's response".

Until now, the $US250 million ($270 million) Google-backed Uber has only allowed users to ride in taxis and private hire cars in Sydney and Melbourne. But now it has started to branch out into the "ridesharing" market, allowing anyone to ferry users around in Brisbane, Sydney and Melbourne provided they are at least 24 years old, have insurance, a licence, no criminal record, and own a four-door car that is no older than a 2005 model.

"This has to be dealt with before it gets out of hand," NSW Taxi Council chief executive Roy Wakelin-King said.