The car hire booking service Uber, labelled “illegal” by the State Government, has gathered some qualified political support with the Liberal Party refusing to join condemnation of the service.

One Upper House MP is prepared to introduce amendments to fix any legal problems with the service, which is putting a scare through the local taxi industry.

Uber, which entered the Adelaide market a week ago, allows customers to get a quote, book a car and pay for it at the swipe of a Smartphone screen. In South Australia, it says it is recruiting accredited hire car drivers.

READ MORE: On the road with Uber Adelaide

The cashed-up company operates overseas and in many Australian states, but acting Transport Minister Tom Koutsantonis has labelled it illegal and has threatened to fine drivers.

In response, Uber says it is operating within the law, and has continued to recruit drivers and offer services.

Liberal transport spokesman Corey Wingard said he was seeking a briefing from the Government and the Taxi Council on the basis for their claims about the legality and safety of the service.

He told InDaily that while safety of customers was paramount, the Government shouldn’t dismiss innovation out of hand.

“I hope they aren’t starting every sentence with ‘no’,” he said.

If Uber is found to be breach of the Act, at least one local politician is happy to put forward legislative amendments to help the company continue to offer services to South Australians.

Family First MLC Dennis Hood told InDaily that business in SA was over-regulated and he’d be happy to consider amendments to the Passenger Transport Act.

“Why shouldn’t members of the public be able to contact another hire car service if it meets their needs,” he said.

“Certainly, South Australia is over-regulated, over-taxed and we have too much red tape.

“It seems times have moved on. The internet has opened up a new world of possibilities for industries, including public transport. Regulation has to keep pace, and I’m happy to look at what’s required.”

Greens MLC Tammy Franks says she is keeping an open mind on the service and wants more information from the Government about its concerns, beyond “hysterical” claims about safety.

“It seems to be an over-reaction from government,” she said.

Franks said the situation mirrored an issue with a babysitting booking app, which was illegal in South Australia until a few years ago when child care legislation was updated.

She said the regulatory environment had failed to keep pace with the reality of how people access services in the digital era.

Supporters of Uber have also compared it to Airbnb, a hugely successful global accommodation booking service which allows individuals to rent properties or rooms in their homes to travellers.

Uber is an app-based service, through which customers can register their details and then start booking rides.

The app allows customers to get a quote for a trip, check if there’s a nearby driver, book the car and then track its progress. The appeal for the customer, as well as the competitive rates, is that they can stay at their desk, for example, until they’re notified the car has arrived. Because a customer’s credit card details are registered with the company, there’s no fussing around with cards or cash in the car.

Customers are sent the driver’s details and photograph. Likewise, the customer’s details are retained by Uber. Then, both driver and customer can rate each other via the app.

The Government says the service is in breach of SA legislation because Uber itself has not applied for hire car accreditation in SA.

It also argues that a hire car office needs to have a physical location and staff in SA – not simply a mobile phone number – so that SA Police and authorised officers from the Department of Planning, Transport and Infrastructure can access records.

Booking offices need to be approved by the Minister, the Government says.

In response, Uber says it is operating within the law.

“All partner drivers who use the Uber platform to connect with riders in South Australia are accredited, professionally licensed operators who are fully compliant with local laws,” an Uber spokeswoman said.

“The safety of the drivers and riders who use Uber is always our highest priority.”

Uber passengers can see the name, face and vehicle registration of their driver before getting in the car, she said.