Transport for London, the governing authority, said that it rejected the application to renew the license because "Uber's approach and conduct demonstrate a lack of corporate responsibility" by not reporting serious criminal offenses, obtaining medical certificates and background checks for the drivers.
Last year Liverpool council granted the company a five-year licence, meaning Uber could sign up Liverpool-registered private hire drivers.
London on Friday deemed Uber unfit to run a taxi service and stripped it of its licence to operate from the end of next week, in a major blow to the U.S. firm and 3.5 million users in one of the world's wealthiest cities.
The Mayor of London advised more than 500,000 people protesting the decision to ban taxi service Uber from the capital to turn their anger on the company for its failure to address safety and security issues.
He said Uber had to address safety concerns and it was important that there was a level playing field across the private hire market.
The process could see the dispute roll on for up to a year, during which time Uber will be able to continue to operate in London.
Uber, specifically Tom Elvidge, general manager of Uber in London, vehemently refuted the regulatory body's allegations.More news: Sensex drops 232 points on rupee slipping to 4-month low
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Uber said it plans to appeal and accused London's regulator of caving in to special interests "who want to restrict consumer choice".
The company came under scrutiny in Britain after it emerged that dozens of rape and sexual assault claims had been made against their drivers and when one of their drivers used his vehicle in a recent terror attack on Buckingham Palace.
Uber said in response that it would challenge the decision.
Those millions of residents who use the service, which is in most instances considerably cheaper than hiring one of London's famous black cabs, are not happy about the decision.
Uber enables users to book cars using their smartphones and is available in more than 40 towns and cities across the UK.
Stronger regulations around taxi licensing and enforcement are needed, Leeds City Council has said as a row broke out over Uber cabs in the country's capital.
Anger over the ban should be directed at Uber, says Sadiq Khan.
A woman poses holding a smartphone showing the App for ride-sharing cab service Uber in London on September 22, 2017. Uber asked its customers to "defend the livelihoods of 40,000 drivers - and the consumer choice of millions of Londoners".