Rio De Janeiro Bans Uber, Plans To Launch Its Own App

Uber's quest for global availability has hit another bump in the road, as Rio de Janeiro has banned the ride-sharing service.

The city, which will host the Olympic Games next year, became the first in Brazil to forbid its citizens from using the smartphone based-app on Tuesday when Mayor Eduardo Paes signed legislation that was recently passed by Rio's city council, according to The Guardian.

The new law bans Uber as well as other services that offer rides via smartphone apps, and Uber drivers who ignore this law could be fined as much as $500.

"Uber is forbidden," Paes said after signing the bill. "We are open to discuss the matter, but it is forbidden."

Uber has been fighting to be able to provide rides in cities across the world and has faced strong opposition from taxi drivers and politicians along the way, TechCrunch reported. While the company managed to succeed in places like New York City and Las Vegas, the challenge has been tougher oversees, such as in France, where drivers have accused Uber of "economic terrorism."

The San Francisco-based service launched in Brazil in 2014, which brought it to over 5,000 drivers and 500,000 users today.

Rio, the second-biggest city in Brazil, plans on launching its own app that all taxi drivers would be required to use, according to state media, CNN Money noted. The service will feature a function for submitting complaints, and customers will be able to use the app for free.

"It is a sad day in Rio," Uber said in a statement referring to the ban, adding that it is looking into possible legal actions, The Guardian reported. "To please taxi owners in the city, Mayor Paes sanctioned a completely unconstitutional bill to ban technology from the city, leaving cariocas (Rio residents) with less options to move around."

The move follows shortly after the city council of Sao Paulo, Brazil's biggest city, passed legislation to ban Uber. However, Mayor Fernando Haddad has yet to decide on whether to sign or veto the bill, as he said he wants to find a "middle path" for the dilemma.

"We aren't thinking only about Uber. We are thinking of ways to include this new technology in our city's regulations," Haddad said.