The city government has joined the Taxi Unions in the legal fight against Uber. Their biggest 'stick' at this point is that Uber does not have any sort of business license, nor have they established any sort of Argentine Legal entity. Uber does not even have an Argentine Tax ID number, so on top of all the transportation regulations that they are breaking, they are also evading taxes.
I can see that all this is part of the strategy that Uber has, but regardless of how this all plays out, these initial months of "grey" operations is going to cost them $$$, the City Tax Office is going to go after them and the penalties are going to be hefty. Would not be surprised if some of the Uber Management Teams employees get thrown in front of a Judge over the next couple of days.
Looking at a broader picture, I agree with Hiddy that the Argentine Economy needs more competition, and I am a 100% pro business (greedy) Capitalist. Having said that, I also think that it is not reasonable that Uber be allowed to create unfair competition that will drive many Taxi Drivers to bankruptcy. I support Uber in their quest to be a market player in Buenos Aires, but they must do so playing fair & square, following all the laws & regulations regarding of the City & Country they operate in.
The silly excuse that Uber is only some sort of private platform that connects individuals is a gross simplification that is totally unreasonable....
Stay Tuned.