Edmonton city council has approved a bylaw that will allow ride-sharing companies like Uber to operate legally.

Councillors voted in favour of the bylaw on Wednesday.

The bylaw, which takes effect March 1, includes two licences: one for ride-sharing companies, called private transportation providers, and the other for taxis.

Mayor Don Iveson said the bylaw is a result of demand for more choice in the vehicle for hire industry.

The Alberta Taxi Group said it's disappointed with the vote, saying it fails to safety and consumer protection concerns.

Uber praised the city, saying it is the first Canadian jurisdiction to adopt regulations that "embrace" ride-sharing.