London authorities discovered that Uber drivers who had faked their identity completed more than 14,000 trips between late 2018 and early 2019.
Uber’s license to operate in London will not be renewed, but the firm has 21 days to appeal the decision.
The ride-hailing service will continue to operate in the meantime.
Uber notified Transport for London about the issue in May and has since taken steps to resolve it, including implementing facial recognition technology.
TfL states that the decision to cancel Uber’s license was for the safety of passengers.
It claims that Uber’s business model is unregulatable as the company cannot guarantee that cars are properly insured or that drivers are who they say they are.
The decision will affect Uber’s 3.5 million riders and 45,000 licensed drivers who depend on the service in London.