Big-name investors including billionaire James Packer, SEEK co-founder Paul Bassat, fund manager David Paradice and the Prime Minister's son Alex Turnbull are backing taxi-booking app GoCatch to launch a new ride-sharing service in Australia.

The new service, GoCar, will be in a head-to-head battle with Uber for the $5.4 billion taxi market.

Disruptive ride-hailing app uberX is facing increased competition around the globe, including from Lyft in the United States, Ola in India and Didi Chuxing in China, but the Australian taxi industry is up in arms as the floodgates open and GoCatch moves to sign up drivers from its network of 35,000 taxis already registered with its booking app.

Uber rival GoCar will launch initially in Sydney, after Uber was legalised in NSW, and will require cars that are less than 10 years old. But GoCatch founder Ned Moorfield is eager to expand quickly into the ACT, which has also legalised ride-sharing services, and other states where taxi regulation is being reviewed. Reports emerged on Tuesday night the Northern Territory Government has moved to ban Uber.