The transport department said in a statement on Monday that the app-based booking service had been "blacklisted" in the Indian capital for "misleading customers".
"Keeping in view the violation and the horrific crime committed by the driver, the transport department has banned all activities relating to providing any transport service by the www.Uber.com," said the department’s special commissioner, Kuldeep Singh Gangar.
The incident took place on December 5 when a 26-year-old woman booked an Uber taxi. However, instead of being driven home she was allegedly taken to a secluded area and raped.
Authorities said the driver drove the woman home after the attack and warned her not to report the incident. The woman managed to note the driver’s number and take a photo of the vehicle.
The 32-year-old driver appeared in court on Monday and was remanded in custody for three days.
The San Francisco-based booking service has come under growing criticism both in India and in the US for not adequately screening its drivers.
Indian police said they are considering legal action against Uber for failing to run a background check on the accused driver. The company had employed the driver even though he had previously been arrested on rape allegations three years ago.
According to government figures, a rape is committed in India every 22 minutes.
Activists say that rape victims in India often receive harsh threats and intimidation from the assailants after the attack, and police often discourage the victims from filing complaints.