Police believe a Ford Ranger crashed into a parked Toyota Camry before mounting the footpath and hitting five pedestrians and another parked car on Burwood Road at Burwood about 12.25am.
The Camry, which was being used as a ride-share vehicle, was accepting a fare when the crash occurred, police said.
Paramedics treated multiple pedestrians along with the occupants of the Camry at the scene before they were taken to hospital with non-life-threatening injuries.
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The driver of the Ranger, a 19-year-old man was arrested at the scene and taken to Burwood Police Station where he is currently assisting with inquiries.
A crime scene has been established as police continue to investigate.
Traffic diversions are in place and motorists are urged to avoid the area.