App driver arrested after sex assault

An app-based driver has allegedly indecently assaulted his 19-year-old passenger as he drove her home in Melbourne on New Year's Day.

The young woman had booked a transport service through a mobile phone app and was picked up on King Street around 4am, Victoria Police say.

"During the drive, it's alleged the teenager was indecently assaulted before being dropped off at an address in Templestowe where the matter was reported to police," Victoria Police spokeswoman Belinda Nolan said.

"A 31-year-old Noble Park man has been arrested in relation to the incident."

The man has been released, pending summons and is expected to be charged with sex and unaccredited driving offences.

App-based ride share companies like Uber have come under fire for not having accredited drivers, and taxi associations in some states have warned they could put members of the public at risk.

An Uber spokeswoman said they had suspended the driver as soon as allegations were made.

"This is a terrible crime and our thoughts and prayers have been with the victim and her family," she said.

"It is our policy to immediately deactivate a driver following any such allegation, which we have done.

"We will continue working diligently to assist the authorities in any way we can."