The Delhi government on Monday banned "all activities" of Uber after a young female passenger was allegedly raped by one if its drivers.
An official statement said the Delhi government's transport department has blacklisted the company.
Yesterday, the police had said they will take legal action against the US online taxi service for failing to run background checks on the cab driver.
Uber has faced critical news coverage over its driver screening in the United States too, and has apologised for comments by an executive who suggested "digging up dirt" on journalists investigating the firm.
The police on Sunday arrested the cab driver Shiv Kumar Yadav from Mathura in Uttar Pradesh. He will be brought before a New Delhi court today, Madhur Verma, deputy commissioner with the Delhi Police had said yesterday.
Yadav has allegedly told the police that he spent seven months in jail in a rape case which was filed against him in south Delhi's Mehrauli area in 2011.
Meanwhile, some people questioned the ban imposed by the Delhi government.