Uber drivers pick up on car rental service

Collaborate Corporation has expanded its peer-to-peer car rental service to Uber X drivers and has found a growing market.

A Uber driver in Melbourne has been arrested for allegedly sexually assaulting a female passenger. (AAP)

An Australian technology company is expanding its peer-to-peer car rental service for UberX drivers as eastern states legalise ride-sharing services.

Collaborate Corporation's DriveMyCar business expanded its rental car service to UberX drivers in Brisbane and Melbourne on Monday as laws legalising ride-sharing in Queensland came into effect.

The move comes about a fortnight after Victoria legalised the ride-sharing giant.

Collaborate, an ASX-listed company that operates DriveMyCar and other peer-to-peer services, started the rental business for UberX drivers in Sydney two months ago.

The Uber rentals are in addition to the company's original private car rental service and Collaborate says the uptake has been strong with ride-share rentals in July accounted for 16 per cent of its rental bookings in Sydney.

It has expanded its rental base, which includes corporate fleets, automotive manufacturers and dealers, on expectations demand from the ride-share market will grow.