Popular town car service Uber now has fewer regulatory worries in D.C.

The D.C. Council passed a bill Tuesday, unanimously and without debate, that creates a new class of regulations that would cover Uber, which ran afoul of the District's taxi rules.

Unlike taxis, Uber allows riders to use a smart phone app to hire cars. The service charges higher rates than taxis, but doesn't follow rules for limousine services either.

"I'm proud to report that today, the D.C. Council unanimously passed a bill that promotes innovation, consumer choice, safety, and economic growth throughout the city," Uber founder Travis Kalanick wrote on the company's blog. "The law makes it explicitly clear that a company like Uber can continue to operate lawfully in Washington, D.C."

D.C. cab drivers have complained that Uber has an unfair advantage in the local market.

The bill, sponsored by Ward 3 Councilwoman Mary Cheh, also exempts companies like Uber from fare regulation.

D.C. Mayor Vince Gray still must sign the bill into law.