CCTV footage shows frantic people rushing into nearby shops in an attempt to avoid the burgundy car that was being driven deliberately at them.
What appears to be a father and son seem to fall into the path of the car and three women are seen to frantically run into a shop to avoid the oncoming vehicle.
The burgundy car was filmed earlier in Melbourne by Anton Blajer as the driver did doughnuts outside Flinders Street Station before the driver deliberately drove at nearby pedestrians.
The driver of the red car was seen deliberately targeting pedestrians
Three people have died and at least 25 people were injured, including four children, when the driver targeted shoppers on Bourke Street around 2pm.
Amongst the dead was a man and a woman in their 30s and a young child.
According to local media reports, five people are in a critical condition in hospital.
An extensive family violence history was involved… he had mental health and drug-related issues in the background of this particular person
Police Commissioner Graham Ashton
Witnesses also reported hearing gunshots.
Police have confirmed they have arrested a man.
One eye witness, Stephen O’Brien, 52, who was with his seven-year-old son said that he had seen the car “travelling uncontrollably”.
Victoria police confirmed a man had been arrested
Get Quotes on Home Insurance
He said: “I heard a lot of screaming first. Then I saw the van accelerate down the mall. The police were chasing him.
“I saw a man carrying out CPR on a guy and then the police moved us on.
“My wife said she saw the guy get hit. He did a complete somersault in the air and landed on his back.
“He looked pretty bad. His face was covered in blood. It looked like a civilian was trying to given him CPR. His face was absolutely mangled. Then we saw they had a blanket over him.
“It’s upsetting for me and my seven-year-old son saw it too. Why did they do it?”
Another witness Maria Kitjapanon said: “I saw the car, which was incredibly battered even by that stage.
Victoria police put the area in Melbourne in lockdown
“It was coming straight towards me on the footpath. It took me a couple of seconds to compute, so I stepped aside onto the road.
“As I was stepping off, another police car came about and rammed into the maroon car to make it stop. There were probably 10 police surrounding that guy’s car, with guns drawn, and they fired into the car.”
Victoria police Acting Commander Stuart Bateson said: “A man driving a vehicle has struck a number of pedestrians in Bourke and Queen Street just before 2pm.
“A male deliberately drove into pedestrians.”
Police Commissioner Graham Ashton said the man had a long history of family violence and had recently been charged by officers for assaulting family members.
He said: “An extensive family violence history was involved… he had mental health and drug-related issues in the background of this particular person.
“He has been coming to our attention more recently over recent days in relation to assaults, family violence-related assaults, and also was charged by us over the course of last weekend.”
The police also clarified the the man had no known terrorist links.