Uber looks to dominate in Brazil while taxis push to ban app

The rocketing growth, however, is also a race against time: local governments are moving toward regulating and taxing the company in ways that may hurt its competitive advantage while taxi unions are pushing to ban it entirely.

Brazil's economy is mired in its worst recession in decades, with many riders looking to save money and a ready supply of potential drivers who are otherwise unemployed or underemployed.

[...] while Brazil is known for a byzantine government bureaucracy and high taxes, such regulation has yet to catch up with the sharing economy.

In Rio, Mayor Eduardo Paes signed legislation last month to prohibit the use of private vehicles for paid rides, essentially banning the use of ride-hailing apps.

In Sao Paulo, where Uber pays a few cents per kilometer into a municipal fund, the city government is set next month to roll out a series of regulations, including surprise inspections of accounts of ride-sharing companies.

Taxi drivers argue that Uber drivers have an advantage because they don't face the same bureaucratic hoops, including several inspections each year, a litany of taxes and keeping comprehensive insurance.

Even if he owned his own car, as many Uber drivers do, he figures the maintenance costs would be high from so many hours on the road.

There they waited for a driver to pick them up at a stand with Uber signs and young women wearing shirts that said, "How can I help you?" in various languages.