Thousands of taxi drivers in Brazil held a protest rally against Uber, arguing that the smartphone-based car service has unfair advantages that hurt their businesses.

During the protest on Wednesday, taxi drivers blocked several streets and avenues in São Paulo in order to pressure city officials to pass a law that would ban companies like Uber, reports The Associated Press. Demonstrators argued that Uber is unfair competition because the company's drivers are not subjected to city fees or official inspections.

Meanwhile, on Wednesday the São Paulo city council passed a bill in a 43-3 vote that prohibits the use of ride-hailing applications like Uber in Brazil's largest city.

If the measure goes into effect, Uber drivers who continue to drive in the city can be fined 1,700 reals, or $447. They also risk having their cars confiscated.

The council now has 10 days to send the approved law to City Hall. Then it will be up to Mayor Fernando Haddad to decide whether to approve or veto the bill within two weeks.

In response, Uber wrote on its Facebook page that people "who cross the city every day have the right to choose how they will travel the streets of Sao Paulo."

Uber has also been banned in Brasília and Belo Horizonte. An Uber rep also told Fusion that it will continue to operate in São Paulo, Rio de Janeiro, Brasília and Belo Horizonte until the laws take effect.

Officials in over a dozen other state capitals have also taken steps to prevent the expansion of Uber in different parts of the country.

"We are trying to prevent a future problem, because the arrival of Uber in our city would be a disaster," said city councilman Galba Netto of Maceió, the capital of the northeastern state of Alagoas.

Following the expansion of Uber, a number of similar companies in Brazil have sprung up to compete with the popular service, including Zazcar, SaferTaxi and EasyTaxi.