The Age understands that the Andrews government is set to introduce legislation after the winter break in August to regulate ridesharing - Parliament rises on Thursday and does not return until August 16.

Labor has been criticised for taking a long time to regulate ridesharing despite widespread use in the state. The opposition supports legalising Uber, as does the Sex Party.

Sex Party leader Fiona Patten had introduced a private member's bill in the upper house to legalise Uber, but it is understood a deal has been struck to avoid a potentially embarrassing vote for the government this week.

Ms Patten's bill is set to inform the government's own legislation, in a similar way that the Sex Party's push for protester buffer zones around abortion clinics was eventually introduced as a bill by Labor.

The government faces many challenges regulating Uber, including how much to charge Uber drivers to register, what form of licence they need, compensation for the vocal taxi industry and to make sure that 750,000 trips taken every year by disabled people in taxis are not compromised.

Disability groups have been concerned that the rise, and potential regulation of Uber, will decrease the availability of wheelchair access cabs, which has been the experience in some US cities.

Taxi journeys are subsidised by the state up to $60 per trip for people with a severe or permanent disability. Drivers are also paid a "lifting fee" of $16 to pick up people in wheelchairs or scooters.

There have been calls for this type of subsidy to be extended to ridesharing.

Earlier on Wednesday morning, Premier Daniel Andrews told reporters the government would regulate ridesharing "but we're going to do it properly".

He said other states had acted quickly on ridesharing, but did not get it right.

"I think getting this right is the most important thing. We are a step closer to being able to regulate this industry," he said.

Mr Andrews said the government needed to ensure ridesharing was safe and offered value for money, and that employees were treated fairly.

Opposition transport spokesman David Hodgett said the government was deferring a decision on Uber.

"Once again, Daniel Andrews has chosen to defer making a decision on ridesharing, showing he'll continue to sit on his hands while consumers, drivers and the taxi industry are kept in limbo about their future," Mr Hodgett said.

"If there is no agreement by the resumption of Parliament in August, the Liberal Nationals will introduce our own bill to legalise Uber."

Transport Minister Jacinta Allan is due to address the media on Wednesday afternoon.