Taxi drivers angry about the popularity of ride-booking company Uber have warned that protests could turn "ugly and violent", after rallying outside the Premier's electorate office.

Uber has been attracting an increasing number of traditional taxi passengers, largely because it is cheaper, but the Andrews Government is yet to regulate the service.

About 100 taxi drivers honked their horns and blocked the road with their cabs outside Daniel Andrews' office at Noble Park, in Melbourne's south-east, and waved placards calling for a safe, fair and sustainable industry.

David Singh, from the group Victorian Taxi Families, said the situation could turn violent if problems facing the state's taxi drivers were not fixed.

He said drivers were angry about a proposal from the Essential Services Commission calling for a $10 booking fee to be paid by passengers in peak periods.

They are also angry that Uber is allowed to operate even though it is an "illegal ride-sharing" service.

Mr Singh said Uber drivers' cars should be impounded and drivers given demerit points.

Cars could be 'tipped over, damaged'

He said taxi drivers were under significant financial pressure.

"Uber is illegal. Ride-share is illegal and we need the rule of law to be enforced," Mr Singh said.

"If the decisions are not made correctly, things will be out of my hands and the drivers will do what they want to do. It could get pretty ugly and violent.

"I wouldn't want to be an Uber or ride-share driver if things aren't made out to be an even playing field for us."

Mr Singh said cars could be damaged or tipped over.

"You start taking $15,000 to $20,000 a year off a driver that works 70 hours a week, it's going to hurt," he said.

"This time we're not going away."

Some of the drivers put tape over their mouths and held up signs saying "save our industry".

One driver said he lost $2 million in life savings and no-one was standing up for his rights.

Another driver accused Professor Allan Fells, who wrote a report for the Government on reform, of destroying the industry.

"He destroyed us but we will destroy him," the angry driver said.

Another protester, who was carrying a sign that said "regulation equals safety" called on the Premier to "keep Uber out".

Call for level playing field

Cab driver Ange Goutzioulas said the Government had taken too long to make a decision and taxi drivers did not know where they stood.

"All we're asking is come out, make a decision, let us know where we stand," he said.

"Let's make it a level playing field, pass on the same costs that we've got on to Uber drivers as well and allow competition.

"We're all for that. Just make it a level playing field."

Opposition Leader Matthew Guy said he could not work out why it was taking the Andrews Government so long to make a decision.

"I think Daniel Andrews and Jacinta Allan have had too long now to make a decision," he said.

"Get on with legalising Uber in a regulated framework that has cabs, Uber and other ride-sharing apps on the same level playing field.

"It can be done. It's been done in other parts of Australia. I don't see why Victoria should be any different."