Tempers frayed in the Melbourne CBD as a convoy of taxis parked along Bourke St, and refused to budge.
Creating a blockade in front of the state's parliament, hundreds of drivers then picketed the office of the Victorian Premier Daniel Andrews.
They warned such action will continue until Uber is regulated in the state, with drivers saying the taxi industry on the brink of collapse.
"Nearly 40 years I have been serving the public, the politicians don't care," veteran cab driver Jim Dimetriou said.
Driver Kulwant Singh said: "The whole taxi industry is finished, we are just struggling now."
The state has an estimated 6500 Uber drivers.
Tasmania, New South Wales and Western Australia are among those to introduce legislation to regulate the burgeoning ride-sharing service, some even offering compensation for taxi drivers.
David Singh from Victorian Taxi Families said they deserved the same, as he claimed Uber was not competing on a level playing field.
"Competition is when you're both on the same platform," he said.
"We're at the 100m line but they're starting at the 50m mark. At the moment they have no costs, no overheads like we do."
He said taxi drivers have overheads of up to $40,000, compared to just $2000 for Uber drivers
The Essential Services Commission added fuel to the fire last week by suggesting a new $10 booking fee for peak hours.
Mr Singh said it's another fee that would hurt the taxi industry.
"They think you'll get a better service with a $10 surcharge," he said.
"A $10 surcharge will kill the industry, we think it's unfair and un-Australian."
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Taxi drivers drove in a convoy to Noble Park and blockaded Mr Andrew's electoral office.
Taxi industry representative George Kolliou said: "We going to stay here until we get an outcome. If we need to bring Melbourne to a stand still we will."
Drivers have vowed to continue the demonstrations and blockades until the government brings in regulation for Uber in Victoria.
They are demanding Uber drivers pay a plate fee of $10,000 annually, and that Uber cars be fitted with security cameras.
Premier Daniel Andrews said the legislation is currently under review.
"The Minister for Public Transport is running a process engaging many different industry stake holders, and we'll have an announcement to make once that work it done," Mr Andrews said.
Uber declined to a request for comment.
